This week has seen a range of companies posting 1H and 2Q earnings results under global standards. A key factor coming through in all has been the effect of Rouble volatility.
The Russian Rouble has held relatively steadily at about 30.50 to 32 to the US dollar for about 3 months. That’s in marked contrast to the last year which has seen the Russian currency as strong as 23.15 to the dollar in august 2008, and as low as 36 to the dollar in February this year.
Managing that 30% fluctuation hasn’t been easy and this weeks postings are showing three key impacts.
Exporters – oil, gas, and metals, for example – see a weaker Rouble as a good thing. It makes their products more competitive abroad, and reduces their production costs in relation to their end product pricing.
