Posted on 03/03/2022 9:55:03 PM PST by fluorescence
MOSCOW, March 3 (Reuters) - The Russian rouble slumped to new record lows against the dollar on Thursday though it closed the Moscow session little changed, after Fitch and Moody's downgraded Russia's sovereign debt to "junk" status, with steps by the central bank and finance ministry failing to halt its slide.
Russia's financial markets have been thrown into turmoil by sanctions imposed over its invasion of Ukraine, the biggest attack on a European state since World War Two. The stock market remains closed and trading volume on its sovereign debt has vanished.
The rouble ended at 106.01 per dollar in Moscow from Wednesday's 106.02 close, after hitting an intraday record low of 118.35, down over 10% on the day.
Against the euro , it closed down another 1.9% at 117.60 after weakening past 125 for the first time ever during the session.
In foreign markets , the rouble was recently trading at 110 per dollar, down 9.1% on the day, with bids in other platforms close to 117 per dollar.
"You know trading is thin when the Bank of England and European Central Bank stop publishing quotes on the rouble exchange rate," said Brian Jacobsen, senior investment strategist for multi-asset solutions at Allspring Global Investments.
"The bid-ask spread is a measure of liquidity and you could drive a truck through that spread. The longer the situation plays out, the more economic damage will be done to the Russian economy and sellers of roubles will get more and more desperate while potential buyers get more and more hesitant to hold the currency."
Russia's invasion of Ukraine and the sanctions imposed in response have led to dire warnings about the Russian economy, with JPMorgan predicting a 35% contraction in the second quarter.
(Excerpt) Read more at reuters.com ...
Russia’s invasion of Ukraine and the sanctions imposed in response have led to dire warnings about the Russian economy, with JPMorgan predicting a 35% contraction in the second quarter......
Nothing like the smell of napalmed rubles in the morning.
The rouble is rubble.
Part of Putin’s grand plan, no doubt.
Russian version of Build Back Better!
Whose life has Putin improved at this point?
Anyone?
Bueller?
Yet he’s a hero to many posters here.
He’s so smart and he has made life for russians so much better in the last week or so. Maybe he can take some of them for a ride on his yacht? How about vacations at the puting palace on the black sea?
/s
I read now that his nimrods have shelled a nuclear power plant. Brilliant.
The problem will be what does Putin do in response to the sanctions? Will he bomb a NATO Country? Then what? Very serious situation at hand.
It’s a European war, let them fight it on their own for a change; if Putin bombs a NATO country, sell them bombs, bullets, and bullshit.
BUT NO AMERICAN TROOPS!
If necessary drop our NATO membership.
The problem will be what does Putin do in response to the sanctions? Will he bomb a NATO Country????
Economically he doesn’t have many options. I hear going to china as a possibility but that would take a major recalibration to turn from Europe.
He would never bomb a Nato country because then the Treaty clause that if one country is attacked all are would activate and the war would go beyond Ukraine. No one wants that which is why Nato wont commit troops either, only supplies.
The problem is The US IS NATO.
This is where it gets dicey, what about Turkey. What if Turkey decides to drag NATO in it, in the hope that eliminating Russia as a threat, will allow Turkey to finally achieve its ambition of rebuilding The Ottoman Empire?
what about Turkey. ...
If Turkey is attacked by Russia then Nato would be obligated to defend. If Turkey attacks, no obligations by the other members.
Turkey is a hard call. They have disregarded Nato obligations in the past. Nato might disregard them in the future.
I dont know a single person who’s “hero” is Putin, what nonsense are you spewing?
Hey, lots of people in New York City don’t know a single person who voted for Trump.
Nice to see unprovoked aggression won’t come without a steep cost to the Russian economy. This will only continue to spiral downward for them as the Ukrainians pin those mongrels down in a protracted insurgency.
One or more on Putin’s general staff could bring this to and end and stop the bleeding if only they’d do the right thing and off him.
There are quite a few here in FR who express deep admiration for Putin. Look around at some of the discussion threads.
In before fraud pedojoe bidet sends a relief package.
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