Rouble Hits The Two-Year High Against Dollar As New Sanctions Are Imposed

Rouble Hits The Two-Year High Against Dollar

Rouble Hits The Two-Year High Against Dollar As New Sanctions Are Imposed

The Russian rouble surged to a two-year high versus the dollar and the euro on Wednesday, sustaining support for tight capital controls as the European Union announced a new set of penalties against Russia over the Ukraine crisis.

In an effort to further isolate Moscow, European Commission President recommended a phased oil crisis on Russia, as well as sanctions against its main bank and a ban on Russian broadcasters from European airwaves.

After the first of two successive long weekends to honor the May holidays, Russian marketplaces were reopening. Due to the fact that many investors are still on holiday, trading volumes are expected to be low this week.

The rouble was 2% firmer against the greenback. The rouble’s value is supported by capital controls, which affect market movements in Russia. Short selling is prohibited, and foreign investors are prohibited from selling shares in Russian enterprises without approval.

Before the holidays, investors were treated to a bustling final day of trading. The MOEX Russian index, which is based on the rouble, was down 2%.

After the European Commission proposed banning Sberbank and two other banks from the worldwide SWIFT transaction and messaging system, shares in Russia’s largest lender fell 3.4 percent.

After the rouble dropped to a record low in March as Western nations hammered Moscow and its banking system with unprecedented sanctions, market investors are questioning if the present rate is viable in the light of the restrictions.

On the strength of the dollar and government dollar-selling intervention, South Korea’s forex reserves in US dollars decreased by the highest in more than two years in April. The nation’s foreign exchange reserves were estimated to be around $450 billion dollars.

It was the greatest monthly drop in US dollar-denominated foreign exchange reserves since the first quarter of 2020. Last month, the won-lost 3.5 percent against the US dollar, the most in a single month.

In a statement, the Bank of Korea ascribed the drop to a stronger US currency and attempts to reduce instability in the foreign exchange market, a term that is frequently used to suggest government involvement.

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