By Jake Cordell

(Reuters) -The Russian rouble hit its weakest degree towards the U.S. greenback in additional than 5 months on Thursday earlier than paring losses because the West’s value cap on Russia’s oil exports elevated promoting strain.

The rouble fell to 64.95 towards the U.S. greenback in early commerce in Moscow for its lowest studying since July 6. It later recouped some floor to commerce down 0.8% for the session at 64.53 by 1300 GMT.

In opposition to the euro, the rouble hit an 11-week low earlier than recovering barely, down 0.6% at 68.73, whereas the forex was 0.9% decrease towards the at 9.25.

After crashing to all-time lows when Moscow despatched tens of 1000’s of troops into Ukraine on Feb. 24 and the West imposed sanctions on Russia, strict capital controls have helped the rouble to rebound.

At a televised assembly with authorities officers on Thursday, President Vladimir Putin vowed Russian had defied Western makes an attempt to destroy its economic system and hailed the forex’s efficiency.

“After a severe surge in March and April, value ranges in Russia have hardly modified since Could, and the Russian rouble has grow to be one of many world’s strongest currencies this yr,” he mentioned.

Nevertheless, fears of a worldwide recession mixed with the European Union’s embargo on Russian oil exports and a Western value cap that took impact early this month have elevated the strain on the Russian forex.

Analysts mentioned a fall in overseas forex earnings by Russian exporters – who’re required to transform not less than half of their overseas earnings into roubles – was pushing the rouble down.

Russian inventory indexes had been down sharply on Thursday.

The dollar-denominated RTS index misplaced 2.2% to face at 1,037.8 factors, whereas the rouble-based MOEX Russian index was additionally down 1.7% at 2,123.4 factors.

A central financial institution assembly on Friday can be in focus. The regulator is anticipated to carry rates of interest at 7.5% in its last rate-setting resolution of the yr.

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