Sanctions Push Rouble to All Time Low

The Russian rouble has fallen to a new all-time low against the US dollar amid concerns about the effect of sanctions on the country’s economy.

The rouble fell about 1% to 38.72 per dollar, the weakest it has been since the currency was restructured in 1998.

Last week, the US and Europe introduced further sanctions against Russia for its actions in Ukraine.

Former finance minister Alexei Kudrin said on Tuesday sanctions would have a material impact on the Russian economy.

“The sanctions that have been imposed are going to have an effect for the next one or two years because they have limited opportunities for investment in this uncertain environment,” he said, according to Interfax news agency.

New sanctions imposed on Friday last week targeted Russia’s state finances, energy and arms sectors.

Russian state banks are now excluded from raising long-term capital in the European Union, export bans have been extended, while future EU-Russia arms deals are also banned.

The EU has also followed the US in targeting more individuals in President Putin’s inner circle, as well as some major companies.

via BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.