Ruble Drops as New Set of Sanctions in Horizon

Russia’s currency has hit its lowest level ever against the U.S. dollar as the risk of new Western sanctions threatens more economic damage.

The European Union said Saturday that it was preparing to issue new sanctions as soon as this week in response to signs that Russia had sent troops into Ukraine.

Russia has denied that its armed forces are active in the country.
The ruble slid 0.5% against the dollar Monday, taking its losses for the year to about 13%. One dollar will now buy you about 37.5 rubbles.

The sliding currency will make life harder for Russians by raising the cost of imports, which could further fuel inflation that has already risen to about 7.5%.

via CNN

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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