Russia’s currency fell 5.5% against the dollar today( Friday)
That happened immediately after the country’s president signed treaties to annex four regions of eastern and southern Ukraine.
The announcement by Russian President Vladimir Putin marks a steep escalation of the conflict between the two nations.
Tweet on Ruble fall over 5% within a day
Russian ruble falls after annexation!
— The_Journalbiz (@the_journalbiz) September 30, 2022
WSJ on latest from the currency market
The moves in the ruble are a sign of investor nervousness,
though Russia’s currency has been an unreliable barometer of sentiment about how traders feel about the nation, unlike the British pound with the U.K.
Since the start of the war, the ruble has been in a central-bank-induced coma, with foreign investors largely unable to sell local-currency assets and Western banks largely shutting down trading in ruble, evaporating price discovery.
Ironically, on the market currency this year ruble is up more than 20% against the dollar this year, even with Friday’s decline.