USD climbs as RUB hits new record low, EUR declines

By Raffaele Redi

The USD strengthens as investors seek shelter from risk in the safe-haven greenback

The Russian rouble fell to a new record low in thin offshore trading, after the Bank of Russia closed local markets for trading until Tuesday 8 March.

Meanwhile the US dollar continues to climb, with the Dollar Index reaching 99.19 – up 0.5% in the last 24 hours – while the value of the euro has declined as the European Union gears up to impose new sanctions on Russia.

USD climbs as RUB hits record low

As the Ukrainian war continues, the US dollar continues to strengthen as investors seek risk protection in the safe-haven greenback.

“The war in Ukraine rages on, with Russian president Putin saying that he will not stop the fighting until Ukraine surrenders. The West has ratcheted up its sanctions package, and there is now talk in Washington of trying to kick Russia out of the World Trade Organisation. Just to add to the toxic mix, oil prices have surged on fears that the US and Europe may block Russian oil transfers,” said Kenny Fisher, a market analyst at Oanda.

On the other hand, the USD/RUB pair is trading at 153.40, with the Russian rouble reaching a new record low as more and more companies leave the country following NATO sanctions on Russia.

Sales hit Russian sovereign debt as rating agencies signalled a high risk of default, leaving the Russian 10-year government bond at an unprecedented 19.53% yield.

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EUR/USD price history

Date Close Change Change(%) Open High Low
Aug 15, 2022 1.02535 0.00000 0.00% 1.02535 1.02680 1.02396
Aug 14, 2022 1.02533 0.00011 0.01% 1.02522 1.02627 1.02517
Aug 12, 2022 1.02574 -0.00628 -0.61% 1.03202 1.03249 1.02376
Aug 11, 2022 1.03201 0.00220 0.21% 1.02981 1.03640 1.02752
Aug 10, 2022 1.02985 0.00908 0.89% 1.02077 1.03682 1.02014
Aug 9, 2022 1.02078 0.00101 0.10% 1.01977 1.02470 1.01884
Aug 8, 2022 1.01976 0.00258 0.25% 1.01718 1.02215 1.01590
Aug 7, 2022 1.01718 -0.00014 -0.01% 1.01732 1.01784 1.01688
Aug 5, 2022 1.01792 -0.00680 -0.66% 1.02472 1.02479 1.01413
Aug 4, 2022 1.02471 0.00909 0.90% 1.01562 1.02533 1.01537
Aug 3, 2022 1.01564 0.00002 0.00% 1.01562 1.02098 1.01224
Aug 2, 2022 1.01563 -0.01064 -1.04% 1.02627 1.02936 1.01543
Aug 1, 2022 1.02622 0.00522 0.51% 1.02100 1.02747 1.02074
Jul 31, 2022 1.02100 -0.00009 -0.01% 1.02109 1.02218 1.02052
Jul 29, 2022 1.02251 0.00334 0.33% 1.01917 1.02540 1.01457
Jul 28, 2022 1.01917 -0.00134 -0.13% 1.02051 1.02340 1.01134
Jul 27, 2022 1.02050 0.00767 0.76% 1.01283 1.02203 1.00963
Jul 26, 2022 1.01284 -0.00943 -0.92% 1.02227 1.02499 1.01073
Jul 25, 2022 1.02227 0.00235 0.23% 1.01992 1.02576 1.01783
Jul 24, 2022 1.01991 -0.00053 -0.05% 1.02044 1.02182 1.01986

EUR continues to decline

The EUR/USD pair fell 3% last week and dropped by a further 0.5% on Monday to 1.0864, touching its lowest level since May 2020.

“It’s a messy situation all around, and the euro has become a punching bag for jittery investors, as the eurozone is not all that far from the fighting and much of its oil needs are covered by Russian supplies. Any good news, such as progress towards a ceasefire, could help reverse the euro’s nasty skid,” said Fisher.

Meanwhile, the European Commission is gearing up to impose a new wave of sanctions on the Kremlin, as European Commission president Ursula Von der Leyen announced a “new sanction enforcement package”.

The announcement came in the run-up to a meeting with Italian prime minister Mario Draghi, with the Italian government trying to tighten local and European relationships with Qatar and other Arabic countries, in a bid to become less dependent on Russian gas.

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