- Title: Rouble skids to 4-year low after Russia and OPEC fail to reach deal
- Date: 9th March 2020
- Summary: MOSCOW, RUSSIA (MARCH 9, 2020) (REUTERS) VARIOUS OF CURRENCY RATE BOARD VARIOUS OF MOSCOW BANK / PEOPLE IN STREET VARIOUS OF FINANCIAL ANALYST SERGEI DROZDOV IN HIS OFFICE (SOUNDBITE) (Russian) FINANCIAL ANALYST, SERGEI DROZDOV, SAYING: "The fact that Russia refused to join the OPEC deal and reduce oil production, became the main trigger, therefore, global speculators reacted so nervously to this news and today we see such a spectacular drop in the cost of a barrel. What does that mean? Of course, there is nothing good for exporting countries. Today, Saudi Arabia announced that it's another negative point, they can increase production to 10-12 barrels per day, plus they have lowered oil prices for their European consumers."
- Keywords: OPEC Russia Rouble Russia oil coronavirus rouble crash
- Reuters ID: LVA001C4C0BWN
- Location: MOSCOW AND SAMARA REGION, RUSSIA / AT SEA
- City: MOSCOW AND SAMARA REGION, RUSSIA / AT SEA
- Country: Russia
- Duration: 00:01:03
- Aspect Ratio: 16:9
- Topics: Currencies/Foreign Exchange Markets,Economic Events
- Story Text: The Russian rouble slumped to its weakest level since early 2016 on Monday (March 9) following a crash in the oil price after Moscow and OPEC failed to reach an oil output deal, prompting Saudi Arabia to slash its crude export prices.
The rouble had tumbled 7.7% to 74.40 versus the dollar on the interbank market as of 1409 GMT after falling to 74.95, a level last seen in late February 2016. Against the euro, the rouble was at 84.95, its weakest since February 2016.
Russian authorities were quick to respond to the rouble's fall, with the central bank suspending its daily purchases of foreign currency for state reserves for 30 days, in an attempt to ease downside pressure on the rouble.
On Friday the rouble had ended on the Moscow Exchange at 68.57 against the dollar and 77.51 versus the euro.
Oil prices lost as much as a third of their value on Monday in their biggest daily rout since the 1991 Gulf War as Saudi Arabia and Russia signalled they would hike output in a market already awash with crude after their three-year supply pact collapsed.
Yet another drop in the rouble and oil prices could be sensitive for authorities and Russian President Vladimir Putin, who last week blamed low oil prices on falling household incomes.
Shares in Russian companies also fell sharply in London as the Moscow Stock Exchange was closed on Monday for a public holiday.
According to the financial analyst, Sergei Drozdov, if that trend continues, Russian stock markets can face a "bloodbath".
The falling rouble usually sparks concerns about inflation as rises in the dollar and euro filter into prices in Russia as imports become more expensive.
Rapid moves in the rouble also suffocate business and investment activity as companies tend to play forex markets instead of focusing on their business.
(Production: Alexander Reshetnikov, Anastasia Adasheva)
- Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2020. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Embargoed:23rd March 2020 17:49
- Usage Terms/Restrictions: None