The Russian ruble rises to low volumes, the market observes coupon payments

    Home / Business Markets / The Russian ruble rises to low volumes, the market observes coupon payments

The Russian ruble rises to low volumes, the market observes coupon payments

0

A view shows the Russian ruble coins in this illustrative photo taken on March 25, 2021. REUTERS / Maxim Shemetov / Illustration

Register now for FREE unlimited access to Reuters.com

March 16 (Reuters) – The Russian ruble rose against the dollar in Moscow and offshore trading on Wednesday, although volumes remained low and other Russian assets remained non-tradable.

Bombs rained down on Ukrainian cities despite rumors of a compromise from both Moscow and Kiev in the peace negotiations, three weeks after the Russian invasion began. to know more

Market participants, meanwhile, focused on whether Russia would pay coupons on its sovereign debt due Wednesday or start the clock with a 30-day grace period, after which it could default on its foreign sovereign debt. for the first time in over a century. to know more

Register now for FREE unlimited access to Reuters.com

As trading closed in Moscow, the ruble gained 1.9% on the day to close at 108 per dollar and gained 0.7% against the euro to close just below 117.7.

On foreign currencies, the ruble was recently offered at 91 per dollar and traded at 97, up more than 13% on the day. So far this year it has fallen by 23%.

“There was no liquidity in the ruble, so very small movements, very small amounts of volume and demand for the currency can cause large increases, rather than anything in particular,” said Rachel Ziemba, founder of Ziemba Insights.

“Due to the restrictions of the Russian Central Bank, the ruble is still relatively non-convertible, there are many question marks about what foreigners can do with it. I would not trust that a rise in the ruble was persistent.”

Russia has $ 117 million in payments due Wednesday on two dollar-denominated Eurobonds. Fitch Ratings said on Tuesday that if payments were made in rubles, it would be a sovereign default if not corrected after a 30-day grace period. to know more

Sources said there was still no proof of payment at the end of the working day in London. to know more

The events in Ukraine and subsequent sanctions against Moscow triggered the worst economic crisis in Russia since the fall of the Soviet Union in 1991.

The Moscow stock market was essentially closed by order of the central bank and will remain closed for the rest of the week. The shares were last traded in Moscow on February 10, 25, after which the central bank imposed restrictions.

The European Union launched a new round of sanctions on Tuesday, including bans on investments in the Russian energy sector, exports of luxury goods to Moscow and imports of steel products from Russia. to know more

Register now for FREE unlimited access to Reuters.com

Reuters reporting; Editing by Alex Richardson and Richard Pullin

Our Standards: Thomson Reuters Trust Principles.

.

Leave a Reply

Your email address will not be published. Required fields are marked *