How Markets Reacted to Russian Attack on Ukraine – Rouble Plunges to a Record Low

Source: WSJ

The Russian rouble fell to a record low of 89.99 against the dollar, as global markets saw inflows into safe-haven assets following renewed fears over Moscow’s invasion of Ukraine. USDRUB is up +2.97%.

• The record low trading of the Russian currency happened after the Moscow Exchange lifted a trading halt that was imposed earlier in the day. 
• MOEX stock index, which is rouble-dominated, fell by more than 43%, while RTS, which is dollar-denominated, plunged almost 48%. 
• The Turkish lira fell to a two-month low, as the South African rand also traded lower. 
• Following the crisis, Ukraine stopped foreign currency purchases in the interbank market and fixed the hryvnia exchange rate. The country’s stock market regulator also suspended the circulation of all securities. 
• Currencies traditionally regarded as safe havens saw gains led by the dollar and the Japanese yen. Spot gold surged by 1.8% to its highest in thirteen months as investors sought for safety in the volatile environment. 
• Outside the currency and stock market, cryptocurrencies tumbled, with Bitcoin trading slightly above 35,000. About $242 million liquidations were experienced in the crypto sector on Thursday.
• Brent oil claimed the $100 a barrel price as the crisis threatened to curtail the supply of the commodity in global markets.
• As global markets react, the attack has now attracted broad condemnation from across the world, with Ukrainian President Volodymyr Zelensky saying the country was resilient against the invasion. Leading nations have pledged sanctions against Moscow, while promising to respond “decisively.”