Russian Ruble Plummets to Lowest Level Since Start of Ukraine War

Forex - The Russian ruble has fallen to its lowest level since the start of the war in Ukraine, driven by fears that new U.S. sanctions will further block Russia's already limited trade channels. The recent decline of the ruble has crossed a psychologically significant threshold for ordinary Russians, surpassing 100 rubles per dollar, with USD/RUB dropping to 110.93, marking its weakest value since March 2022. Analysts indicated last week that the U.S. is imposing sanctions on dozens of financial institutions, including Gazprombank, one of the last major Russian credit institutions not previously sanctioned. The restrictions could complicate foreign buyers' ability to make payments for Russian exports. A falling ruble poses a threat of increasing import costs. With consumer inflation already hovering around 9%, the central bank raised interest rates to 21% last month. Another increase is likely when the bank meets in December.