In a thin-volume trading session on Friday, the Russian Rouble dropped from a one-week high as investors’ fret on US sanctions ratcheted up following a Washington remark that hinted stiffer sanctions on Kremlin over a Government-backed wide-spread hacking event that broke off a number of US Federal Agencies alongside other tech conglomerates including Microsoft Corp.
Nonetheless, although Kremlin had declined the accusations, the threat of sanctions had depreciated the Russian currency over the recent past, while the United States had promised to even the score over a mass-scale hacking campaign as beforementioned.
Russian rouble dips as Trump set to leave Oval Office
Aside from the massive hacking campaign what officials said had involved even the US Treasury Department and lasted over nine months, as Democratic hard-liners on Kremlin have been set to take over the Oval Office by January 20, an upscaled rouble sell-off wave had gathered momentum this month.
On top of that, earlier this month, the United States had also urged its western allies not to back the Nord Stream 2 pipeline that would directly supply liquified natgas from Russia to Germany under the Baltic Ocean, slashing a lucrative source of tax revenue for Ukraine, nonetheless, Gazprom, the partially state-backed Russ energy behemoth, had resumed the pipe-laying operation last week, defying a number of US sanctions.
Meanwhile, several analysts were suggesting that the concerns over US sanctions would likely to ramp up further following a takeover of the President-elect Biden’s Administration, though the rouble would likely to hold on to a tight range between 73 to 74 rouble per US Dollar given the extent of a sharp depreciation of the American Dollar.
Citing statistics, in the day’s market closure, Russian rouble dropped 0.3 per cent to 74.14 rouble per US Dollar after hitting a session high of 73.63 earlier in the day, while against the bloc’s common currency euro, rouble ebbed off 0.3 per cent to 90.35.
Besides, a subsidiary of Paris-based French lender and financial service provider Societe Generale, Rosbank analysts were quoted saying in a client note that the Russian rouble would regain traction and sustain its position between 68 to 70 rouble per US Dollar in 2021, while a rise in demands for commodities following a kickstart of vaccination campaigns against the pandemic would likely to support the fundamentals for a heavily commodity-linked Russian currency.
Russian rouble, which had been trading around 61 per US Dollar in early-2020s, nosedived just a notch shy of 20 per cent against the greenback this year so far.