MOSCOW: The Russian rouble tumbled to a more than two-year low against the dollar on Friday after Washington imposed sanctions on a key bank facilitating Russia’s gas exports to Europe and as Moscow’s firing of a new hypersonic missile stoked geopolitical tensions.
Moscow fired the newly developed hypersonic ballistic missile - the Oreshnik or Hazel Tree - at a Ukrainian military facility on Thursday in response to Kyiv striking Russia with US-made and British-made missiles this week for the first time after the US granted its approval.
Also on Thursday, Washington imposed new sanctions on Russia’s Gazprombank that prevent the lender from handling any new energy-related transactions, potentially shutting down the only way European customers can pay for Russian gas.
By 1331, the rouble was down 1.7% at 103.02 against the dollar, earlier hitting 103.7455, its weakest mark since March 23, 2022. Trade in the rouble has become more opaque since sanctions in June abruptly halted exchange trading dollars and euros.
“The rouble is continuing to decline,” said Yevgeny Kogan, professor at Moscow’s Higher School of Economics. “The main reason is sanctions against Gazprombank, which was a backbone bank for exporters.”
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