In scant offshore activity, Russia’s rouble fell to a new record low, with local markets closed until at least Wednesday.
According to Refinitiv data, the rouble fell to 130.9338 per dollar after closing at 121.037 on Friday. The rouble fell as low as 140.00 against the dollar on the EBS trading platform.
Offer margins were between 10 and 15 cents, indicating a market that is becoming increasingly unstable.
Due to a bank holiday, trading on the Moscow exchange MOEX will be suspended until Wednesday. In the Moscow Stock Exchange, stocks were last traded on February 25.
After the start of the year, the rouble has lost more than 40 percent of its value versus the dollar, with losses quickening since Russia invaded Ukraine on February 24, prompting sweeping sanctions from Western capitals and isolating the country from international financial markets.
‘Trading the rouble has become extremely tough since the sanctions,’ said Aaron Hurd, senior portfolio manager for currencies at State Street Global Advisors. ‘Liquidity has evaporated, and markets have become extremely volatile,’ says the author.
Russia’s efforts in Ukraine are referred to as a ‘special operation.’
The one-week and one-month implied volatility gauges for the rouble – a measure of demand for options on the currency increasing or falling against the dollar – have remained at record highs, with the one-week gauge above 84 percent and the one-month gauge above 94 percent.
The rouble’s depreciation has had an impact on trading volumes. In comparison to the end of February, turnover on the Russian currency on EBS fell by more than 80 percent on Friday.
Post Your Comments