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Rouble Plunges Nearly 30% To Record Low Amidst Fresh Sanctions

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Rouble Plunges Nearly 30% To Record Low Amidst Fresh Sanctions
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The Russian rouble collapsed nearly 30 per cent to a record low on Monday

The Russian rouble collapsed nearly 30% to a record low at the start of trading on Monday as Russia’s isolation deepens after its Ukraine invasion, which is the biggest assault on a European state since World War Two and fresh Western Sanctions in response.

According to reports, Russia’s central bank raised its key rate to an unprecedented 20 per cent from 9.5 per cent in a desperate bid to shore up the rouble amid crippling Western sanctions.

President Vladimir Putin put Russia’s nuclear deterrent on high alert on Sunday in a barrage of Western-led reprisals for his war on Ukraine.

Crude oil prices jumped, global stocks slid, while the rouble crashed to a record low on tough Russian sanctions.

The rouble plunged nearly 30% to an all-time low versus the dollar after Western-led political, strategic, economic and corporate sanctions were unprecedented in their extent and coordination.

Russia’s central bank scrambled to manage the broadening fallout of the sanctions, saying it would resume buying gold on the domestic market, launch a repurchase auction with no limits and ease restrictions on banks’ open foreign currency positions.

Russia has become a global, economic, and financial pariah. Over 30 countries representing well over half the world’s economy have announced sanctions and export controls on Russia. Putin’s government is getting kicked off the international financial system,” a senior White House official told reporters.

“To be clear, this is a sad outcome for the people of Ukraine, the people of Russia, and many others. This is not where we wanted to be, but this is Putin’s war of choice, and only Putin can decide how much more cost he is willing to bear. The United States and our allies and partners are unified and will continue to impose costs,” said the official on condition of anonymity.

The ramp-up in tensions heightened fears that oil supplies from the world’s second-largest producer could be disrupted, sending oil prices sharply higher on Monday.

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