The ruble weakened as much as three per cent against the dollar on Monday, the most this year, after a mutiny by mercenary commander Yevgeny Prigozhin, whose brief uprising represents the biggest threat to President Vladimir Putin’s political control in his almost quarter century in power.
The Russian currency narrowed losses to trade 0.6 per cent weaker at 85.1050 per dollar at 9:35 a.m. in Moscow, the lowest since March 2022, when it had tumbled to new record lows in the weeks after Putin’s invasion of Ukraine started.
Prigozhin, leader of the the Wagner mercenary group, pulled his fighters back late Saturday after his army marched to within 125 miles of the Russian capital, demanding the removal of Putin’s army chiefs. He pulled back after Belarusian leader Alexander Lukashenko helped to broker a deal that defused the challenge to Putin’s leadership.
“Ongoing uncertainty is likely to keep the ruble still under pressure,” UniCredit AG analysts said in an emailed report, forecasting a fall towards 90 per dollar.
Russian banks increased their exchange rates on Saturday to more than 100 rubles per dollar as Prigozhin’s army advanced on Moscow. A day later, after he said he’d withdraw, the rates were cut back to previous levels.
The ruble has lost about 13 per cent of its value against the US currency this year, making it one of the worst performers among emerging markets worldwide.
