Russian ruble drops to 14-month low following attempted mutiny

The Russian ruble plunged against the dollar on Monday, hitting its lowest level in 14 months since the domestic crisis.

Meanwhile, after a short period of riots in Russia, markets in the US and most of Europe retreated, raising concerns about the stability of the nuclear powers.

Wagner’s army, led by Yevgeny Prigozhin, halted its advance before it reached Moscow, but analysts say the uprising has made President Vladimir Putin’s grip on power worse than previously thought.

European stocks closed at limited gains despite concerns on the trading floor, while Wall Street indicators dictated a surprise amid bearish moods, especially as they touched on popular tech stocks. .

Asian markets also fell.

The ruble hit $85.37 to the dollar, its highest level since April 2022, shortly after Russia invaded Ukraine. However, the Russian currency has since recovered slightly.

On Monday, the Russian government tried to signal a return to normalcy, with Putin addressing a youth engineering conference praising the industry for addressing “external challenges.”

The Bank of Russia’s board of directors has announced a significant increase in the key rate by 10.5 percentage points, bringing it to a historic high of 20 per cent per annum.

 

The ruble experienced a decline against the dollar on Monday, reaching its lowest point in 14 months.

On Monday, the ruble fell against the dollar, reaching a 14-month low.

 

Over the weekend, European and American stock markets dismissed an attempt to balance Russia.

“If you’re worried about what’s going on in Russia, don’t worry about what’s going to happen, worry about when it’s going to happen. It looks like they’re testing it,” said CMC Markets analyst Michael Hewson. said.

“The market was very bullish at the start of the week,” said Tim Waterler, senior market analyst at KCM Trade.

Earlier, Mr. Prigogine and traders have already reported that Western banks are likely to raise interest rates amid slowing growth in major economies and high inflation.

Events in Russia “become more obvious in the equation,” Waterler said.

Investors are looking for clarity on the monetary policy plan and are watching Federal Reserve officials after Chairman Jerome Powell warned last week that interest rates are likely to rise.

His remarks touched off expectations that the bank had ended its tightening cycle and came as other countries announced interest rate hikes.

Investors are very concerned that the Eurozone is in recession and that global changes will have a negative impact on the global economy.

A poll on Monday showed German business confidence rose in June as dark clouds loomed over Europe’s biggest recession-hit economy.

Based on a survey of 9,000 businesses, it has fallen for two months in a row.

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