Russian Ruble Eases from 3-Year High
2026-06-19 12:03
By
Andre Joaquim
1 min. read
The Russian ruble weakened to 73 per dollar from the three-year high of 70 in late May as the deteriorating fiscal backdrop momentarily offset the support from capital controls and elevated energy prices.
The Bank of Russia projected that fiscal policy will be more accommodative than expected in the upcoming three years, as the federal government continued to increase its bond supply to finance the costly war in Ukraine and subsidies for industries that have been hampered by sanctions from the West since 2022.
This trimmed gains from the surge after the war in the Middle East lifted energy prices and drove major energy consumers to turn to Russia for supply alternatives.
On top of that, the series of sanctions and the slowdown in the Russian economy limited domestic demand for foreign goods, hampering the purchases of foreign currency that further strengthened the ruble.
The Russian GDP contracted by 0.2% annually in the first quarter.