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The Russian rouble is weakening slightly amid geopolitical uncertainties

The Russian rouble is weakening slightly amid geopolitical uncertainties

The Russian rouble was slightly weaker against the U.S. Dollar on Wednesday, as the market anticipated further developments in the talks between Russia's and the U.S. regarding Ukraine. President Vladimir Putin’s special envoy is expected to visit Washington later this week.

The rouble had fallen 0.3% to 84.25 USD on the OTC market by 1115 GMT. The Russian currency has risen by about 25% this year against the dollar, mainly on expectations that geopolitical tensions will ease.

Sources familiar with the plan say that Kirill Dmitriev - a key Kremlin negotiator - is expected to arrive in Washington this week for discussions with President Donald Trump's Administration, including U.S. Special Envoy Steve Witkoff.

Denis Popov, an analyst at PSB Bank, said: "The news backdrop is excessively volatile, and we do not believe that it provides clear positive signals. This will continue to limit the demand for rouble-denominated assets."

He added that, "due to the increased volatility in exchange rates and the uncertainty of geopolitical outlooks, we will be focusing our attention on sideways movement in the exchange rate in the near term."

The rouble, which is the most commonly traded currency in Russia, was down 0.4% to 11.70 at the Moscow Stock Exchange. (Reporting and editing by Gareth Jones.)

(source: Reuters)