Rouble surges, stocks fall as Russia holds Ukraine referendums

Rouble surges, stocks dip as Russia holds Ukraine referendums By Reuters

Breaking News

‘;

Economy 22 minutes ago (Sep 23, 2022 06:55AM ET)

(C) Reuters. FILE PHOTO: Woman holds Russian Roubles in front of U.S. Dollar banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic

(This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.)

(Reuters) – The Russian rouble surged to new multi-week highs on Friday while stocks fell in volatile trade as Moscow mobilises some 300,000 extra troops for the conflict in Ukraine.

Despite President Vladimir Putin’s mobilisation order, the rouble hit its highest level versus the U.S. dollar since Aug. 19 this week and its strongest against the euro since July 27.

After initially falling against the U.S. dollar, the rouble recovered and was up 2% against the greenback at 57.71 by 1021 GMT. Against the euro, the rouble was 2.5% stronger at 56.18.

Currency controls and month-end tax payments which see Russia’s exporters convert their foreign currency earnings into roubles to make payments to the treasury are providing a boost to the rouble despite the geopolitical headwinds, analysts say.

Stocks were deep in the red as markets remain jittery over how Russia’s mobilisation drive will affect the conflict. The dollar-denominated RTS index dropped 1.8% to 1,153.5 points. The rouble-based MOEX Russian index was 3.6% weaker at 2,112.4 points.

Russian shares have seen heightened volatility all week in response to the mobilisation order and as Moscow stages referendums in four regions of Ukraine on joining Russia.

The new moves from Moscow have raised the prospect of further economic sanctions from the West, with the European Union saying it will discuss a new package of penalties.

After surging in Thursday’s session on news it had enough free cash flow to pay interim dividends, shares in Gazprom (MCX:GAZP) fell back in line with the wider market on Friday, down 2.6% in rouble terms.

“Today the Russian market is dominated by negative sentiment … the Friday factor seems to be stronger than usual as market players are not risking keeping their long positions over the weekend,” said Zarina Saidova, an analyst at Moscow-based Finam investment firm.

For Russian equities guide see

For Russian treasury bonds see

Rouble surges, stocks dip as Russia holds Ukraine referendums

Marketmind: Keep on goingBy Reuters – Sep 23, 2022

A look at the day ahead in U.S. and global markets from Alun John. U.S. investors deserve some calm on Friday after a wild week for markets, though if their European counterparts’…

Britain bets all on historic tax cuts and borrowing, investors take frightBy Reuters – Sep 23, 2022

By David Milliken and Andy Bruce LONDON (Reuters) -Britain’s new finance minister Kwasi Kwarteng unleashed historic tax cuts and huge increases in borrowing on Friday in an…

ECB seeks to cut subsidy to banks as rate hikes leave it on hook, sources sayBy Reuters – Sep 23, 2022

FRANKFURT (Reuters) -The European Central Bank is studying ways of cutting a subsidy to banks that stands to cost it tens of billions of euros in interest, four sources told…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

About the author

Related