Russian ruble crashes against U.S. dollar reaching lowest rate in 17 months
Russia's currency sold at 100.35 roubles per U.S. dollar in early trade on Monday
The Russian ruble on Monday morning fell past 100 against the U.S. dollar for the first time since March 2022.
Russia's currency sold at 100.35 rubles per U.S. dollar in early trade, weakening by nearly 25 percent since the beginning of the year. The lowest exchange rate in 17 months since the Russian invasion of Ukraine placed the country’s currency among the three worst in the emerging markets, alongside the Turkish lira and the Argentine peso.
President Vladimir Putin's economic advisor Maxim Oreshkin told TASS news agency that loose monetary policy was to blame for the Russian currency's weakening.
"The current exchange rate has deviated significantly from fundamental levels, and its normalization is expected in the near future," he said.
"A weak ruble complicates the economy's structural transformation and negatively affects the population's real incomes," Oreshkin added, stressing that "it is in the interests of the Russian economy to have a strong ruble."
The weakening of the national currency began last September after Putin announced a “partial mobilization.” The Bank of Russia blamed the currency’s weakening on the shrinking balance of trade.