Here’s Why Russian Ruble (USD/RUB) Is Dipping

  • USD/RUB has seen massive bullish trends recently.
  • The pair gained 20% as the market opened.
  • The performance emerged after the latest sanctions

USD/RUB climbed to record peaks early on Monday as Vladimir Putin and Russia encountered a thick plot. The pair gained over 30%, hitting record ATHs of 106. However, the asset plunged again.

Russian Ruble Plunges

Monday sessions had the Russian ruble declining as western nations such as the UK and the United States intensified their pressure against Moscow. The European Union and the United States declared stiff sanctions that will impact the Wealthiest individuals and Russian banks. Moreover, the UK introduced sanctions on politicians, including Vladimir Putin and Sergey Lavrov.

The intensified the pressure over the weekend by declaring updated restrictions to impact the Russian economy. For instance, the west excludes some Russian banks from the SWIFT monetary network that allows individuals and companies to send money globally.

Furthermore, western nations stated that they would restrict some of the assets by the Russian central bank. That means the bank will encounter challenges accessing reserves stored in countries like the UK and the US. Remember, Russia moved its assets to regions like China in the past years.

USD/RUB Forecast

USD/RUB has witnessed massive bullish trends over the past days as Russia invaded Ukraine. The pair climbed to the peak of 106. It stays beyond the 25- and 50-day MA while oscillators such as MACD and Relative Strength Index moved upward.

Russia scrambled to escape financial meltdown today as the country’s economy sustained a massive hit by broadside sanctions. Vladimir Putin appeared ready for crisis negotiations with his advisors. That comes after the ruble plummeted to record lows against the dollar. Moreover, the central banks hiked interest rates toward 20%, whereas the Moscow stock exchange remained shuttered on Monday.

The ruble traded at 100 after losing 20%. That emerged after the currency crashed 40%. Meanwhile, a statement from the bank reveals the Russian stock market delayed opening before being canceled.

What are your thoughts about the Russian economy as they attack Ukraine? You can share your views in the section below.

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