Current:Home > MarketsRussia's ruble drops to 14-month low after "rebellion" challenges Putin's leadership-Angel Dreamer Wealth Society D1 Reviews & Insights
Russia's ruble drops to 14-month low after "rebellion" challenges Putin's leadership
View Date:2024-12-23 22:57:40
The ruble reached a 14-month low against the dollar and major equity markets were agitated Monday after an aborted weekend mutiny in Russia that stoked concerns about stability in the nuclear-armed country.
The chief of Russia's Wagner mercenary group, Yevgeny Prigozhin, said Saturday that he'd agreed to halt his forces' "movement inside Russia, and to take further steps to de-escalate tensions," in an agreement brokered by Belarusian leader Alexander Lukashenko.
The Wagner group boss earlier ordered his forces to march toward Moscow after unleashing a long series of videotaped remarks threatening to topple Russia's military leadership, which he blasted as having misled the country and Russian President Vladimir Putin himself about the Ukraine war.
While the advance was called off before it reached Moscow, analysts said the rebellion showed President Vladimir Putin's grip on power was more fragile than previously thought.
It also added to unease on trading floors, where investors last week reversed a recent rally in stocks owing to concerns about ever-rising interest rates aimed at fighting stubbornly-high inflation.
The ruble hit 85.37 to the dollar — a level last seen in April 2022 shortly after Moscow's invasion of Ukraine. The ruble fell further on Monday to 83.89 to the dollar before recovering slightly.
Oil prices rose as Russia is a major producer, but concern about demand owing to the impact of rate rises kept gains limited, while futures for European natural gas jumped.
- What is the Wagner group, and who is Yevgeny Prigozhin? What to know about the Russian private military company
- Secretary of State Antony Blinken says "we haven't seen the last act" in Russia's Wagner rebellion
- Wagner chief Prigozhin says he's accepted truce brokered by Belarus
The revolt came after Prigozhin had railed for months against the Russian military's handling of the war in Ukraine. But Wagner mercenaries returned to their base Sunday after Putin agreed to allow Prigozhin to avoid treason charges and accept exile in neighbouring Belarus.
U.S. Secretary of State Antony Blinken said the rebellion was a "direct challenge" to Putin's authority.
"This raises profound questions," Blinken told "Face the Nation" on Sunday. "It shows real cracks. We can't speculate or know exactly where that's going to go. We do know that Putin has a lot more to answer for in the -- in the weeks and months ahead."
The agreement halted an escalation of the crisis but observers warned that markets were susceptible to any further instability in Russia.
"Even though the Prigozhin mutiny may not cause larger market movements directly, this could quickly change depending on how the political situation in Russia unfolds in coming months," Erik Meyersson, at SEB AB, said.
"Markets will likely become more sensitive to internal political matters in Russia."
Added Liam Peach, an economist specializing in emerging European markets at Capital Economics: "There are a lot of unknowns about how things will play out at this point. While a full-blown war economy looks unlikely, a larger war effort could still threaten the unstable equilibrium that has, to this point, been able to preserve macroeconomic stability in Russia."
veryGood! (393)
Related
- College football Week 12 expert picks for every Top 25 game include SEC showdowns
- Central European interior ministers agree to step up fight against illegal migration at EU borders
- Pope Francis getting antibiotics intravenously for lung problem, limiting appointments, Vatican says
- Diplomas for sale: $465, no classes required. Inside one of Louisiana’s unapproved schools
- Rachael Ray Details Getting Bashed Over Decision to Not Have Kids
- Rosalynn Carter, former first lady, remembered in 3-day memorial services across Georgia
- US closes border crossing to vehicles and limits traffic at another in response to illegal entries
- Israel and Hamas look to extend cease-fire on its final day, with one more hostage swap planned
- Five best fits for Alex Bregman: Will Astros homegrown star leave as free agent?
- 32 things we learned in NFL Week 12: Playoff chase shaping up to be wild
Ranking
- College Football Playoff snubs: Georgia among teams with beef after second rankings
- Kenya raises alarm as flooding death toll rises to 76, with thousands marooned by worsening rains
- Georgia Senate Republicans propose map with 2 new Black-majority districts
- Jennifer Lawrence Reacts to Plastic Surgery Speculation
- Mandy Moore Captures the Holiday Vibe With These No Brainer Gifts & Stocking Stuffer Must-Haves
- 3 college students of Palestinian descent shot in Vermont in possible hate crime, authorities say
- Trump takes up a lot of oxygen, but voting rights groups have a lot more on their minds
- Woman shocked with Taser while on ground is suing police officer and chief for not reporting it
Recommendation
-
Veterans face challenges starting small businesses but there are plenty of resources to help
-
NFL RedZone studio forced to evacuate during alarm, Scott Hanson says 'all clear'
-
Nebraska woman kills huge buck on hunting trip, then gets marriage proposal
-
What is a Beaver Moon, and when can you see it?
-
See Chris Evans' Wife Alba Baptista Show Her Sweet Support at Red One Premiere
-
US closes border crossing to vehicles and limits traffic at another in response to illegal entries
-
What Lou Holtz thinks of Ohio State's loss to Michigan: 'They aren't real happy'
-
UK government reaches a pay deal with senior doctors that could end disruptive strikes
Like
- Tech consultant testifies that ‘bad joke’ led to deadly clash with Cash App founder Bob Lee
- Miles from treatment and pregnant: How women in maternity care deserts are coping as health care options dwindle
- Second group of Hamas-held hostages released after hours-long delay; temporary cease-fire holds