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Rouble pulls up from record low with war in Ukraine, sanctions in focus -Breaking

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© Reuters. In this illustration, taken on February 24, 2022, you can see Russian Rouble Coins. REUTERS/Dado Ruvic/Illustration

MOSCOW, (Reuters) – The Russian rouble strengthened on Friday after hitting all-time lows during the session that President Vladimir Putin had ordered Russian forces into Ukraine.

After firing missiles at multiple cities in Ukraine and landing troops along its southern coast, Russian forces damaged no Russian assets. On Friday, the fighting went on.

After hitting an unprecedented low of 89.60 during volatile trading yesterday, the rouble stood at 0.7% against the dollar, as measured at 0603 GMT.

In comparison to the euro, 0.5% of the ruble traded at 94.78. It had previously hit an intrabank record low of 101.03 Thursday.

Russia’s living standards will be affected by the weakening of the ruble after the invasion from Ukraine. This in turn is likely to lead to an increase in inflation to close to 10%, which is prompting the central bank to take action.

It is possible that the central bank will now respond to market turmoil with an unexpected interest rate rise, just as it did late 2014. In late 2014 it raised its key rates from 10.5% at night to 17% in response to a falling rouble.

We believe a prompt-out-of-schedule 400bp hike or larger by the CBR with the key rate exceeding 13 percent is possible.” Morgan Stanley Note from (NYSE:).

Already, the central bank announced foreign currency sales in support of the rouble. This is the first intervention to ensure financial stability since the 2014 Russian annexation of Crimea.

Markets are also adapting to the harsh Western sanctions on Russia.

Even though these moves did not target Russia’s oil and gas exports or disconnect Russia from SWIFT, the West has been imposing coordinated sanctions on Russia.

For Russian equities guide see

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