Weekly ‘dip’ over 20% for the ruble

The ruble fell more than 20 percent on a weekly basis against the dollar and the euro in Moscow’s trade as the country’s economy hit hard under sanctions aimed at isolating Russia over its invasion of Ukraine, according to Reuters. .

It is also noted that in the evening the rating agency S&P downgraded Russia’s credit rating further deep into junk, a week after removing its investment rating, as international sanctions for the war in Ukraine increased the chances of bankruptcy. Meanwhile earlier in the week, Moody’s and Fitch also downgraded Russia to junk.

Thousands are believed to have been killed or injured, and more than 1 million refugees have fled Ukraine since the Russian-led invasion began on February 24.

The ruble closed the week at 115 against $ 83 from last Friday, although it strengthened 1% since closing on Thursday. Against the euro, it closed just below 119 out of 93 last week. It recorded a negative record against the dollar on Thursday and the euro on Friday.

Dmitry Polevoy, Locko Invest’s investment director, warned that sanctions imposed on Russia over its invasion of Ukraine – which Moscow says is not aimed at occupying territories – would lead to an unprecedented economic shock. for a long time.

“Russian assets are being destroyed in value,” said Cristian Maggio, head of portfolio strategy at TD Securities.

The Moscow Stock Exchange remained closed for a fifth day.

On Friday, Russia’s central bank cut commissions on foreign exchange purchases by private brokers to 12% from 30%. Analysts said a previous move to increase supply to 30% for currency markets such as the dollar, euro and pound sterling had led to distortions such as rising demand for other currencies such as the Chinese yuan and the Japanese yen.