The Russian rouble dipped below 100 to the US dollar for the first time since October 2023, following President Vladimir Putin’s adjustment of the country’s nuclear strike policy amidst rising tensions with the United States over Ukraine.
The central bank set the rouble’s official exchange rate at 100.03 to the dollar, a slight decrease from 99.94 on Monday. Since Russia’s invasion of the Kursk region in Ukraine on August 6, the rouble has depreciated nearly 19%, according to LSEG data.
Western sanctions imposed in June on the Moscow Exchange (MOEX) and its clearing agent, the National Clearing Centre, have halted all dollar and euro trades at MOEX.
The central bank determines the official dollar rate based on over-the-counter (OTC) trading data from banks, making the rate subject to volatility and lacking transparency.
One-day rouble-dollar futures on the Moscow exchange, which serve as a reference for OTC market rates, saw a 0.6% increase to 100.4.
On Tuesday, Putin approved a revised nuclear doctrine, outlining conditions under which Russia could deploy a strike using its vast nuclear arsenal.
