The Russian ruble and the euro fell, and the dollar jumped to a 20-year high against a basket of other major currencies. This happened after Russian President Vladimir Putin mobilized reservists to fight in Ukraine, expressing his readiness to use all means to “protect his country”, writes business.dir.bg.
On Wednesday, the Russian ruble traded at 63 to the dollar, hitting above a two-month low. By 5 a.m. Bulgarian time, the ruble was trading at 62.18 per dollar, after falling to 62.7975 – the weakest point since July 7, Reuters reported. It lost 1.7% of its value against the euro, trading at 61.61 to the euro and 1.5% against the yuan to 8.776.
Russian stock indexes also tumbled, with energy giants Rosneft and Gazprom at one point losing around 12%.
The euro fell as much as 0.9% to $0.9885, a two-week low, after Putin threatened to step up his war in Ukraine, adding headwinds for the common currency ahead of an expected huge rate hike by the Federal Reserve later on Wednesday.
The news from Russia “suggests we may be on the brink of an escalation of war, which raises a whole new set of sources of uncertainty,” said Rabobank strategist Jane Foley. “This is expected to weigh on the euro and currencies in Eastern Europe .”