The rouble has fallen to a 16-month low against the dollar as a surge in Russian military spending and a collapse in export revenues add pressure to a currency suffering under western sanctions and an escalation of capital outflows.
Russia’s currency has lost about 25 per cent of its value this year and traded below 99 roubles a dollar on Friday as the impact of the war with Ukraine bites. The decline has more than offset the rouble’s rise last year when Russia’s initial invasion of Ukraine was followed by a sharp increase in oil and gas prices.
The drop has accelerated in recent weeks, raising economic pressure on Moscow after western sanctions limited capital inflows and European countries weaned themselves off Russia’s energy supplies, reducing the revenues it receives from oil sales.