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 ...
Stupid brutal Russians. Brute force always works as far as the Russkies are concerned. And vodka.
$0.0088 this AM
Putin is fast approaching 70 and has actually lived two years beyond his expiry date of 68.2
Putin can’t wait. It’s now or never
Why is it now spelled “Rouble” instead of “Ruble?” Has the language in Russia changed?
I did a job in the southern Urals. I was stupefied at how many were perpetually drunk. They must make vodka by the tanker load and ship it the same way.
Hey, I’m still trying to get used to “Mumbai” and “Beijing”. ;^)
The story he gave of his childhood growing up in Russia, the corruption at every level of society, the hopelessness and despair of living in a Communist system and the pervasive and endemic alcoholism was astounding.
Sometimes never isn’t such a bad thing.
NO THANKS; A man’s got to know his limitations.
At my age I find I no longer have any patience for fools; to many fools currently living in this GREAT COUNTRY.
Folks would get really upset when I started having them all hanged or shot.
To my way of thinking that’s the only way to deal with LOWLIFE ANTI-AMERICAN FOOLS!
That’s what I think every time I contemplate what it would be like to be in that position. I’m certain Presidents find that prior arrangements (messes) limit future options.
You still have my vote.
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