The Ruble Falls 0.5%

The ruble had previously touched a one-week high of 61.60 but had since lost 0.5% to trade at 62.42 against the euro. At 61.06, it was 0.3% less strong than the dollar.

The ruble depreciated against the dollar and the euro on Wednesday. Russian stocks slid from multi-week highs as falling oil prices overshadowed the impact of future tax payments, which typically increase demand for the Russian currency. Due to capital controls, the ruble has outperformed all other currencies this year. Month-end tax payments often force export-focused businesses to convert a portion of their foreign currency profits. It should give the ruble further support shortly.

The ruble will probably fluctuate between 60 and 62 versus the dollar until exporters start paying more taxes.

Ruble experienced wild swings that brought it to an all-time low of 121.53 against the dollar in March. This was a result of Russia invading Ukraine on Feb. 24.

According to predictions from the economy ministry, Russia’s economy is handling the sanctions better than initially feared and will shrink less than anticipated.

The dollar has risen due to the newly discovered “peak inflation” narrative. Still, the longevity of the more perplexing currency move depends more on how the inflation picture develops outside of the United States.

Investors have been enticed to wager that 40-year high inflation rates may have finally peaked. The U.S. Federal Reserve can loosen the monetary brakes over the next six months due to the enormous retreats in annual U.S. consumer and producer price inflation.

The volatile euro rebounded into positive territory, but the dollar slid against it as a result. The euro had fallen earlier on news that German investor mood had declined somewhat in August. The reason behind this was worries that growing living expenses will reduce private consumption.