Ruble hits near 8-week low against dollar after oil price cap launch

Ruble hits near 8-week low against dollar after oil price cap launch

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The ruble is the world’s best-performing currency this year, supported by an initial drop in imports as a result of capital controls and Western sanctions on Russia over its operations in Ukraine and scores of foreign companies halting operations in the country.

Brent crude oil LCOc1, a global benchmark for Russia’s main export, was up 0.9% on the day at $83.4 a barrel but remained close to the lowest level seen this year.

Oil rebounded on Tuesday after falling more than 3% in the previous session, as the implementation of sanctions on Russian sea-borne crude eased concerns about oversupply.

The Group of Seven has set a cap of $60 a barrel on Russian crude aimed at limiting Moscow’s ability to finance its military campaign in Ukraine, but Russia has said it will not abide by the measure. Even if it has to cut production.

Analysts at Renaissance Capital said the price cap is likely to dent Russian export volumes slightly, but the damage may not be felt elsewhere.

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