More sanctions on Russia are likely to trigger a further sell-off inside ruble, according to one currency expert.
Russia’s currency has already been faltering This particular week inside face of escalating tensions with the West in Syria, as well as more sanctions could be the trigger, said Simon Derrick, a chief currency strategist at BNP Mellon.
“What we have seen inside last week will be the kind of cost action in which we’ve genuinely only seen two or three times before over the course of the in last 20 or so years. Certainly inside late 2014 when we had the ruble crisis then, as well as before in which in 1998 as well as a little bit round the global financial crisis in 2008,” he told CNBC’s “Capital Connection,” highlighting in which the recent moves inside ruble were reminiscent of different crises for the currency.
Over the last seven days, the ruble has fallen through 63 against the dollar to trade at 61.2, amid a war of words between Russia as well as the U.S. — as well as its allies — over Syria. More sanctions were likely to be imposed on Russia Monday, although the country appeared to win a reprieve with the White House stating in which President Donald Trump had not yet approved additional measures.
“What you can say will be in which when you do see the ruble have a crisis, in which usually works For 2 or three weeks as well as reaches a peak when you get, sometimes, moves of 10 percent or more in an individual day. as well as I think we’re in in which kind of cycle,” Derrick added.
Traditionally, the Russian central bank has stepped in to support the currency by selling off amounts of its foreign currency reserves to buy up, as well as stabilize, the ruble on the international currency markets.