The ruble recovered from sinking to its lowest in nearly 15 months against the dollar on June 26, 2023, paring all intraday losses to strengthen as investors responded for the first time to an aborted mutiny by armed mercenaries in Russia over the weekend. Mercenaries led by Yevgeny Prigozhin withdrew from the southern Russian city of Rostov-on-Don overnight on June 24, 2023 under a deal that halted their rapid advance on Moscow but left questions about President Vladimir Putin’s grip on power.
The ruble, under support from month-end tax payments that typically see exporters convert foreign currency revenues to meet local liabilities, was 0.5 percent stronger against the dollar at 84.29 by 1103 GMT, recovering after hitting 87.2300 in early trade, its weakest point since March, 2022. It had gained 0.5 percent to trade at 91.9 versus the euro and firmed 0.6 percent against the yuan to 11.6, also recovering after hitting its lowest in more than two months against both currencies. On June 26, 2023 initial drop came as demand for foreign currency shot up over the weekend, when Russian banks had offered exchange rates well above the official rate beyond 90 to the dollar.\
First Deputy Prime Minister Andrei Belousov said demand for foreign currency had increased sharply in about 15 regions. “On average, it was about 30 percent, but most active growth in demand for cash was recorded in southern regions – in Voronezh, Rostov and Lipetsk, as well as in large cities,” Belousov said. “Demand there increased by about 70-80 percent.”
Source: IBP