Capital markets analysts are starting to worry about Russia’s currency.
But they aren’t ready to panic just yet.
“This could be the last opportunity for the Russian rouble to rebound just yet,” says Robert Danske, senior market strategist at Scotia Capital Group.
He says the rouble is expected to strengthen at the end of the year and has been doing well in recent months.
However, Danskes worries that if the roubles weaken further, the dollar’s value could fall.
With a $1.60 US bond trading at a record low, the currency is worth only around $50 a barrel.
Danske is hoping for a rebound in the ruble, which was down by more than 20 per cent since last year, to around 40 per cent by the end, which would make the rubles value slightly higher than it is now.
But he says that is still far from enough to make up for the rouge’s losses.
“It’s a very small price to pay to buy a good-performing currency that has had its strength erode,” Danskes says.
“The ruble needs to be much more robust.”
What to know about Russia and its economy: The rouble has lost around 50 per cent of its value against the dollar since last summer, according to data compiled by Bloomberg.
The ruble has lost more than half of its current value against all currencies over the past four years.