Rouble plunges

MOSCOW, February 24 (Reuters) The ruble plunges to a record low against the dollar and the euro on Thursday, in highly volatile trading following the president Vladimir Putin ordered Russian forces to enter Ukraine and take over the country. The move is likely to result in new sanctions being imposed on Moscow.

0720 GMT at 0720 GMT, the currency was down 8% than the dollar at 87.55 before hitting the record minimum of 89.60. The currency had lost 6.3 percent in the last hour to reach 97.51 concerning the euro earlier and had climbed to 99.99.


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MOEX Group, which runs the Moscow Exchange, suspended trading just after the markets began trading at 0400 GMT and resumed trading around 0700 GMT.

There was no way that Russian assets were unharmed Bonds and shares dropped as investors weighed the impact of Russia’s expansion towards Ukraine and the possibility of Western sanctions that might be short.

BCS Global Markets said:

The threat of more significant and more severe sanctions is high – even a hint of panic and selling off driven by compliance (are) not out of the question in notes.

A dollar-denominated RTS stocks index (.IRTS) fell 26 percent down to 906.96 points, the lowest level since the beginning of 2020. The currency used to calculate the index was rouble. 

MOEX Russia index: IMOEX decreased by 22%, at 2,419.0 points.

The yields of the Russian 10-year benchmark OFZ the rouble bond that fluctuates in inverse relation concerning the price, increased to 10.93 percent, the most recent high since the start of 2016.

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Western countries and Japan issued sanctions against Russian banks and people in response to Moscow’s acceptance of two separatist regions in the eastern region of Ukraine. However, they also promised more severe measures if Russia intruded on them.

Russia’s biggest lender, Sberbank (SBER.MM), stated that it was ready for any eventuality and created scenarios to secure the customers’ funds interest, assets, and assets.

The central bank stated that it would begin intervention on the currency market and provide additional liquidity to the banking sector.

A top U.S. administration official told reporters on Tuesday that Sberbank and No. two lender VTB (VTBR.MM) will be hit with U.S. sanctions if Moscow continues to invade Ukraine and warned that none of the Russian financial institutions was secured.

Both banks have previously refused to discuss potential sanctions threats.

Brent crude oil, a global benchmark for Russia’s principal export, rose 6.7 percent at $103.32 a barrel, an all-time high of more than seven years.

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By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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