Oil, Sanctions Push Russian Ruble to 4-Month Low

The ruble on Wednesday dropped to a level not seen since February, weakened by faltering oil prices and fresh sanctions against Moscow.

The ruble hit a record low of 85 to the U.S. dollar in January 2016 but then enjoyed a revival, climbing back up to around 56 to the dollar in the spring.

But early Wednesday, the Russian currency fell back to more than 60 rubles per dollar for the first time since February, hitting 60.23 to the dollar.

This represents a six percent drop from early June against the U.S. currency. 

It also weakened to more than 67 rubles against the euro, a first since December.

The ruble "is coming under pressure from a combination of factors, including low oil prices... geopolitics... and recent interest rate moves by the Fed and the Central Bank of Russia," Alfa Bank economists said Wednesday.

The U.S. Treasury on Tuesday expanded its sanctions against Moscow over its interference in Ukraine and annexation of Crimea and the Kremlin said on Wednesday it is evaluating how to respond.

Russian authorities have however welcomed the weakening of the ruble as the sliding currency gives the Russian exporting industry a competitive edge.