The Russian rouble tumbled to its lowest in nearly 15 months against the dollar in early trade on Monday before paring losses, as investors responded for the first time to an aborted mutiny by heavily armed mercenaries in Russia over the weekend.
By 0915 GMT, the rouble was 0.1% stronger against the dollar at 84.60 , recovering after hitting 87.2300 in early trade, its weakest point since March, 2022.
It had gained 0.3% to trade at 92.10 versus the euro and firmed 0.2% against the yuan to 11.68 , also recovering after hitting its lowest in more than two months against both currencies.
Mercenaries led by Yevgeny Prigozhin withdrew from the southern Russian city of Rostov-on-Don overnight on Saturday under a deal that halted their rapid advance on Moscow but left questions about President Vladimir Putin's grip on power.
"Politics is again having a negative impact on investors' mood," said Alexey Antonov of Alor Broker. "The peak of tensions has passed, but an unpleasant residue will linger for some time."
With the rouble not trading over the weekend, Russian banks had offered exchange rates well above the official rate beyond 90 to the dollar, but those were gradually easing as tensions subsided.
"The rouble in the cash market sold off sharply on Saturday with buy/offer spreads widening out substantially," said Goldman Sachs (NYSE:GS) in a note.
But Russian authorities have plenty of resources to support the currency, Goldman Sachs said, viewing fiscal finances as the most important determinant of the currency's moves.
"Should the response to the events over the weekend be additional spending, we think this would be followed by a weaker rouble."
Investors globally were watching for ripple effects from the aborted mutiny, with some expecting a move into safe havens such as U.S. government bonds and the dollar.
