The Russian rouble regained strength, reaching 101.7 per USD as trading resumed after the New Year holiday, recovering slightly from earlier lows. The currency had plunged beyond 115 per USD due to sanctions isolating Russia from global markets, cutting off access to hard currency and forcing the central bank to manage exchange rates since June. A weakening Chinese economy, Russia's key trade partner, reduced demand for exports, worsening foreign exchange inflows. To address revenue shortfalls from energy exports, Moscow eased capital controls, allowing the rouble to weaken and offset its budget deficit. Political pressures also led the central bank to pause its rate hikes in December, further straining the currency.