Forex – Dollar rises to six-week highs against Russian rouble


Rouble sharply lower amid selloff in Russian marketsRouble sharply lower amid selloff in Russian markets – The dollar rose to its highest level in six-weeks against the Russian rouble on Thursday as Russia reacted angrily to a new swathe of Western sanctions against Moscow for supporting Ukrainian separatists.

USD/RUB was up 1.34% to 34.99, the highest since June 4, from 34.65 late Wednesday.

President Barack Obama announced the latest round of sanctions late Wednesday, which include penalties against Russian financial and energy firms, including Rosneft (MCX:ROSN), major banks and defense firms.

Russian financial markets were hit by a selloff on Thursday, with the MICEX down 2.23% amid fears that the new restrictions will act as a drag on the local economy.

Russian Prime Minister Dmitry Medvedev warned that “reciprocal measures against foreign companies and individuals” could be introduced, adding that the new sanctions will fuel anti-Western feeling in Russia.

Elsewhere, the rouble fell sharply against the euro and the yen, with EUR/RUB advancing 1.38% to 47.31 and JPY/RUB adding 1.50% to trade at 0.3447.

Source By Breaking News Website | BreakingNews.WS