The USD exchange rate declined in favor of the Russian ruble, trading at 90 rubles during Monday trading on Moscow Exchange for the first time this month. On the other hand, the euro dropped below 98 rubles for the first time since the end of February, trading data suggested.

The USD dipped 6.41%, reaching 89.85 rubles. The last time it had declined below 90 rubles was on March 1, 2022, just days after the start of the Russian military operation in Ukraine, which saw the West chipping in together to impose harsh restrictions and sanctions on Moscow.

The euro dipped 6.8%, trading at 97.86 rubles. The last time it was trading under 98 rubles was on February 28.

Later on in the day, the dollar exchange rate dipped 6.77%, trading at 89.5 rubles, while the euro dipped 6.48%, trading at 98.2 rubles.

Russian President Vladimir Putin had announced that his country would only accept payments in rubles for gas deliveries to "unfriendly countries" in a nod to all EU members in light of the harsh round of sanctions they imposed on Moscow.

The appreciation of the ruble against the USD and the euro is mainly due to Putin's decision, as following his announcement, Russia's ruble rose in the face of the USD and the euro, marking a major hike since the currency took a dive against the western currencies due to the sanctions imposed on the country.

The sanctions the EU is imposing on Russia are over its special military operation in Ukraine, launched due to NATO's eastward expansion, the Ukrainian shelling of Donbass, and the killing of the people of the Donetsk People's Republic and Lugansk People's Republic, in addition to Moscow wanting to "denazify" and demilitarize Ukraine.

In response, the US and its allies have rolled out comprehensive sanctions, including restrictions on the Russian central bank, export control measures, SWIFT cutoff for select banks, and closure of airspace to all Russian flights. Many of their companies have suspended their Russian operations.