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USD/RUB Falls Below 80 Despite Raft of New Sanctions and Default Risks

RUSSIA
  • USDRUB BGN continues to trade on its own, falling despite the rise in default risk, softer oil/gas markets, increased Western sanctions and hawkish Fed risks.
  • The cross fell to a new 7-week low yesterday, dipping below the 80 handle to a swing low at 77.8525.
  • The primary focus remains on oil/gas sanctions on Russia, which would be the most damaging economically, but also face a number of obstacles with EU members still notably reliant on Russian exports.
  • Additionally, domestic CPI data is due today and expected to rise +7.82% m/m to 16.90% y/y as the effects of warn and sanctions begin to reflect in monthly figures.
  • The rise reflects the cost if isolationism and the depth of the expected recession to come in Russia.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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