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Russia’s Growing Escalation With Ukraine Is Dealing A Huge Low Blow To Ruble

OnZine Articles

ByOnZine Articles

Oct 13, 2022

The recent price action of the Ruble against the major currencies, especially, the dollar is turning out to be a losing bet. The price of the Ruble is constantly losing its value against the dollar and things are not looking good.

Ruble Hits Three-Month Low

In the latest trading session, the trading price of the Ruble declined tremendously. The value of the Ruble has declined so much it has ended up hitting a three-month low

Following the dip, the value of the Russian Ruble dropped to 64 versus the greenback. This is an alarming situation for the Russian Ruble and something that the government needs to deal with swiftly.

Ukraine Conflict Keeps Ruble Down

The value of the Ruble has been taking a huge fall due to Russia’s conflict with Ukraine. Just when things appear to be going in the right direction, the conflict takes the worst turn.

Russia is constantly using its military power against Ukraine, which further escalates the conflict. The country has even threatened the rest of the world not to fear otherwise, there would be a nuclear war.

With no other way to deal with the situation, most of the European countries and their allies such as the United States have tightened sanctions against Russia.

As the country has been hit with sanctions greatly affecting imports and exports, the country has no choice but to stop most of the imports to save its Rubles’ value.

Ruble’s Decline

In the latest forex trading session, the value of the Ruble plummeted by 2.1% versus the dollar. Following the dip, the value of the Ruble went all the way down to 64.03. This is the lowest trading price the Ruble has hit since July 7.

The value of the Ruble recorded a 2.5% dip against the euro in the latest trading session. After the dip, the euro’s trading price went to a low of 62.95.

Against the euro, the value of the Ruble went all the way down to 63. The Ruble had not hit the particular level since August 11. This was for the very first time such a low level was hit by the Ruble against the euro.

The Russian Ruble failed to perform against the Japanese yen as well, as it recorded a 1.4% decline in value against it. Following the demise, the value of the Ruble has fallen to 8.78 versus the yen.

As per statistics, it is a three-week low the Ruble has hit against the yen.

Ruble to Continue Getting Pressurized

According to analysts, the Russian Ruble may continue facing a downtrend. The exporters are bound by the restrictions as well as the sanctions, which have deprived them of generating much foreign currency.

Major multinational companies have also abandoned Russia, which is also very upsetting for the country. So far, the country has been surviving the downfall due to the capital controls the country has put in place.

However, if Russia’s conflict continues with Ukraine, its Ruble may continue to lose its value.

OnZine Articles

OnZine Articles

OnZine Articles main author - Max Haydon

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