logo logo

The next-generation financial news, and trading signals for you to start driving your FOMO today!


FREE trading signals

Get free daily crypto signals to make profitable trades every day!

View fresh signals


Fred Cole

An editor at FOMOdrive

  • Jun 30, 2023
  • 2 min read

The ruble won back almost all the losses on the "mutiny" PMC Wagner

oil pump on Russian flag background

On Monday, the ruble hit its lowest point in 15 months, due to the events of the week involving PMC Wagner.

The dollar surged in early trading to above 87 rubles/$, the highest rate since the end of March last year, due to heightened political tensions in the nation.

On Monday, the dollar exchange rate opened with an upward gap and within the first few minutes of trading, it surpassed the highs since March 30, 2022, reaching above 87.20 rubles per dollar.

Exchangers sold cash for 10 rubles and above the closing level of trading on Friday, amidst the events surrounding the "mutiny" of the PMC Wagner over the weekend.

At first, the dollar experienced a surge due to panic buying; however, by the end of the day, it had nearly lost all of its gains.

Interfax-CEA reported that the ruble experienced a moderate decrease against major currencies on Monday, as exporting companies sought ruble liquidity in order to pay taxes for the month. Volatility was observed during the trading session.

Taxes, VAT, insurance premiums, and excises must be paid to the budget on Wednesday, June 28th - the designated single day for such payments.

BCS notes that the combination of increasing uncertainty and weakening oil prices creates a favorable atmosphere for the depreciation of the ruble. Although the tax period may act as a restraint, it is unlikely to be enough to keep the exchange rate at its current level.

Alor Broker has warned that, despite the large volumes of currency that may be put up for sale in the foreign exchange market over the next two days due to exporting companies needing to pay taxes to the state, the technical picture suggests that the dollar/ruble pair may still move towards the target of 89-90 rubles.

Promsvyazbank does not anticipate any further appreciation of the dollar at this time. Both external and internal conditions appear to be steady, which should help to maintain the value of the national currency.

Share this article