Russian Rubble Falls to 12 Week Low After Sanction Threat

The Russian ruble stayed southbound as threats of more sanctions from the developed world weighed on sentiment, sending the USD/RUB pair to a 12-week high on 29 July.

The US President and European leaders agreed on Monday to widen the net of sanctions against Russia’s financial, defence and energy sectors in retaliation for its involvement in Ukraine.

USD/RUB rose to 35.77 on Tuesday, its highest since 6 May, from the previous close of 35.56. The pair has been on a rising trend since 27 June, when it touched a six-month low of 33.55.

The ruble has weakened more than 6.2% against the US dollar since then.

via IB Times

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza