Russian rouble value dips ahead of Trump-Putin meeting

Russian markets have been jittery since President Donald Trump set a deadline for Russia to agree to peace in Ukraine or face tightened sanctions

The Russian rouble fell to a more than one-week low against the US dollar on Friday, as markets awaited crucial talks between Russian and US leaders, hoped to advance a ceasefire.

The main aim of today’s meeting in Alaska is to set up talks between Putin and the Ukrainian president, Mr Trump told Fox News Radio, adding that he has three locations in mind for such a meeting.

Market jitters have persisted since US President Donald Trump set an 8 August deadline for Russia to agree to peace in Ukraine, or face tightened sanctions.

At 8.07am GMT, the rouble was down 0.3 per cent at 80.00 to the dollar (LSEG data), having earlier hit 80.2955, its weakest since 6 August.

Against China's yuan, the most traded foreign currency in Russia, it was 0.4 per cent weaker at 11.09.

The rouble has lost support of some capital controls after the government on Thursday abolished a requirement for exporters to repatriate and sell part of their foreign currency earnings.

Donald Trump and Vladimir Putin are set to hold a crucial summit in Alaska as the US president attempts to seal a ceasefire agreement on Ukraine (Reuters)

This change, Bogdan Zvarich of Promsvyazbank said, "should not affect FX supply or the rouble rate too much."

"Investors are now more focused on geopolitical factors," Zvarich said. "We expect a moderate decline of the rouble at the start of next week."

The rouble has also been held back by low oil prices, reduced government FX interventions this month and declining export revenues.

Brent crude oil LCOc1, a global benchmark for Russia's main export, was up 0.6 per cent on the day at $66.42 a barrel.

The US president, who is gearing up to meet his Russian counterpart for the first time since 2018, said that he thinks both leaders “will make peace”.

Friday’s talks between the presidents will include a one-on-one meeting, a bilateral lunch with both delegations and a press conference, the White House announced.

Earlier on Thursday, the Russian leader praised Mr Trump’s “sincere efforts” towards ending the war in Ukraine, telling Kremlin officials the US is making “quite energetic and sincere efforts to stop the fighting”.