Ruble rises from record low due to war in Ukraine, sanctions in focus

The illustration showing the Russian Ruble coins seen in this illustration was taken
The Russian Ruble coin seen in this illustration was taken, February 24, 2022. REUTERS / Dado Ruvic / Illustration

February 25, 2022

MOSCOW (Reuters) – The Russian ruble steadied on Friday, pulling up from an all-time low hit in the previous session when President Vladimir Putin ordered Russian forces to invade Ukraine.

No Russian asset was spared in Thursday’s sharp sell-off after Russian forces fired missiles at several Ukrainian cities and landed troops on the country’s southern coast. The fighting continued on Friday.

At 0603 GMT, the ruble was 0.7 percent stronger against the dollar at 84.72, having hit a record low of 89.60 in volatile trading a day earlier.

Against the euro, the ruble gained 0.5% to trade at 94.78, having touched an all-time low of 101.03 on the interbank market on Thursday.

A weakening ruble following the invasion of Ukraine is expected to reduce living standards in Russia and drive already high inflation near 9% prompting the central bank to act.

The central bank can now tackle the market meltdown with an unplanned rate hike as it did at the end of 2014 when it raised the prime rate to 17% from 10.5% late at night amid ruble plummeted.

“We think the CBR will likely rise rapidly beyond schedule 400bp or higher with a key rate in excess of 13%,” said Morgan Stanley.

The central bank, which sets an inflation target at 4%, has announced foreign currency sales to support the ruble, embarking on interventions to bolster financial stability for the first time since 2014 when Russia annexed Crimea from Ukraine.

The market is also digesting new harsh Western sanctions against Russia.

Analysts say these moves are limited to separating Russia from the international banking system SWIFT or targeting oil and gas exports, and that Russia has spent the past seven years building defenses. formidable financial player, analysts say the country’s economy is unlikely to withstand the onslaught of coordinated penalties. from the West for a long time.

For a guide to Russian stocks, see

For Russian Treasuries, see

(Reporting by Andrey Ostroukh; Editing by Kim Coghill) Ruble rises from record low due to war in Ukraine, sanctions in focus

Caroline Bleakley

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button