Ruble Drop as Russia-backed Defy Announce Evacuations

The ruble weakened on Friday and fell to $77; After the Russian-backed separatists announced a sudden evacuation to eastern Ukraine. This alarmed the already exciting markets. Russia repeatedly denied allegations that it may plan to invade neighboring Ukraine; However, fears of military conflict have damaged its assets; it will almost certainly lead to new Western sanctions against Moscow. Also, the ruble was 1.3% weaker against the dollar, at 77.29. Fell sharply to 75.63 per session; After Donetsk and Lugansk announced evacuation plans.

According to reports of a car bomb in Donetsk, the ruble caused losses. Vladimir Putin ordered the Minister of Emergency Situations to travel to southeastern Russia to evacuate the locals. In addition, the ruble fell to 87.54 against the euro, a total of 1.1%. It is worth noting that a week ago, before the last sale, the Russian currency was trading at 74.26 against the dollar. The weekends as it began. There is uncertainty on the economic and geopolitical fronts.

Ruble and Tensions at the Border

Russian markets are worried about tensions over Ukraine. Which improves on the withdrawal of Russian troops near the border; however, it is declining as Western powers warn of an imminent invasion. US President Biden said that Russia is preparing an excuse to justify the invasion. However, talks between Moscow and Washington, scheduled for next weekend, raise sincere hopes for a diplomatic solution. Joint military exercises between Russia and Belarus have put the West in danger. In Moscow on Friday, Vladimir Putin said Russia should strengthen its economic sovereignty to overcome the threat of sanctions.

In fact, the risk of severe sanctions has increased significantly. This could put pressure on Russia’s sovereign ratings. According to Russian executives, bankers, and former senior US sanctions officials, US sanctions that cut dollars to Russian state-owned banks are the most potent measure for NATO members. Russian stocks reduced profits. The dollar-denominated RTS index was up 1,391.3 points, falling 4.1% overall. The MOEX Russian index stood at 3,393.3 points and was down 3.4% overall. This is the lowest rate since January 27.