Russian ruble extends freefall as US weighs new weapon for Ukraine amid Putin regime's disarray

• The Russian ruble extended its slide, dipping to a 87.75-per-dollar level on Thursday.
• This comes after the Wagner revolt has caused continued political turmoil in the country.

The Russian ruble extended its downward descent on Thursday, as the Wagner Group's weekend mutiny continued to reverberate.

The currency fell as low as 87.75 against the dollar, hitting a fresh a 15-month low. The ruble has dropped over 15% since the start of 2023 and is down more than 80% from a high in June 2022.

Other the past year, the ruble has faced several headwinds, including lower oil and gas prices, rising US bond yields, high inflationary, and a weakened economy.

But Wagner's advance on Moscow Saturday prompted Russians to scoop up foreign currencies. Over the weekend, 15 regions saw a significant increase in demand for foreign currencies, First Deputy Prime Minister Andrei Belousov said on Monday.

Since then, Russia has seen more turmoil, especially in its military. A top Russian general is believed to have been secretly arrested, having possibly known about the uprising beforehand.

Meanwhile, the ruble's weakness this week was also worsened by the end of a tax period, when exporters tend to convert foreign currency revenues to rubles. With local liabilities now settled, ruble demand has dropped, weighing on its exchange rate.

Russia's military and political landscape could get another jolt soon after Wagner's Yevgeny Prigozhin decried the Kremlin's handling of the war on Ukraine and sought the removal of top defense officials.

The US is now considering arming Ukraine with the Army Tactical Missile System after previously opposing it, sources told the Wall Street Journal.

With Russia still reeling from the Wagner revolt, Western officials believe now it the time to supply more advanced weapons, the report said.

The ATACMS long-range missile would provide Kyiv with the ability to strike Russian targets farther beyond the frontlines, making on-the-ground support more challenging.