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The Russian ruble falls to a new record low in weak offshore trading

FILE PHOTO: Russian ruble banknotes are seen in this illustrative image taken in Moscow
FILE PHOTO: Russian ruble banknotes are seen in this illustrative image taken September 30, 2014 in Moscow. REUTERS/Maxim Zmeyev

March 7, 2022

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LONDON (Reuters) – The Russian ruble fell to a new record low in thin offshore trading, with local markets closed to trading until at least Wednesday.

The ruble weakened to 130.9338 against the dollar after closing at 121.037 on Friday, according to Refinitiv data. On the EBS trading platform, the ruble fell to 140.00 against the dollar.

Bid-ask spreads ranged from 10 to 15 cents, indicating an increasingly illiquid market.

Trading on the Moscow exchange MOEX will remain closed until Wednesday due to a public holiday. The shares last traded on the Moscow Stock Exchange on February 25.

The ruble is down more than 40% against the greenback since the start of the year, with losses escalating sharply since Russia invaded Ukraine on February 24, prompting sweeping sanctions from Western capitals and the country from international ones financial markets isolated.

“After the sanctions, it has become very difficult to trade the ruble,” said Aaron Hurd, senior portfolio manager for currencies at State Street Global Advisors. “Liquidity has disappeared and markets have become very volatile.”

Russia calls its actions in Ukraine a “special operation”.

The ruble’s implied volatility gauge — a measure of demand for options on the currency rising or falling against the dollar — remained near record highs set last week, with the gauge for a week above 84% and for a week was above 94% for a month.

The collapse of the ruble has also affected trading volumes. The turnover of the Russian currency on the EBS fell by more than 80% on Friday compared to the end of February.

(Reporting by Karin Strohecker; Additional reporting by Saikat Chatterjee; Editing by Edmund Blair)

https://www.oann.com/russian-rouble-drops-to-fresh-record-low-in-thin-offshore-trade/?utm_source=rss&utm_medium=rss&utm_campaign=russian-rouble-drops-to-fresh-record-low-in-thin-offshore-trade The Russian ruble falls to a new record low in weak offshore trading

Caroline Bleakley

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