Russian rouble falls to a 5-month low vs U.S. dollar after drone incursion in Poland

The Russian rouble fell to a five-month low against the U.S. dollar on Wednesday, crossing the 85 rouble mark, after drones from a Russian attack in western Ukraine were shot down in Polish airspace.

The rouble USDRUB_SPT weakened by 1.6% to 84.00 against the dollar, after hitting 85.12 during the session, according to LSEG data based on over-the-counter quotes, by 0820 GMT.

The rouble was down by 1.2% at 11.91 against the Chinese yuan, the most traded foreign currency in Russia, in trading on the Moscow Stock Exchange.

The rouble has lost 5% against the dollar since the start of the week. Analysts said the move was linked to an expected key interest rate cut by the central bank on September 12, rising demand for imports and renewed threats of Western sanctions.

"Fears of sanctions, coupled with expectations of a rate cut, continue to put pressure on the Russian currency," Bank of St. Petersburg analysts said in a research note.