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17 Mar 2014
Flash: RUB depreciation continues - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes the RUB falling might extends.
Key Quotes
"The yen has weakened modestly in the Asian trading session reversing gains recorded last week which were driven by heightened investor concerns over slowing economic growth in China and geopolitical risk related to ongoing developments in the Ukraine. As expected over the weekend, Crimea voted overwhelmingly to rejoin the Russian Federation in a referendum."
"According to the Crimean authorities, 95% voted to rejoin Russia on a turnout of 82%. Russian officials have made it clear that they view Crimea’s referendum as legitimate in contrast to the international community."
"It now remains to be seen as to whether Russia will choose to formally annex Crimea. Russia is set to face international sanctions following the referendum as soon as today with EU foreign ministers scheduled to meet in Brussels."
"The Russian central bank has reassured lenders that emergency liquidity measures used during the global financial crisis could be swiftly reactivated. With control of Crimea all but lost to Russia it remains to be seen as to whether it will choose to invade other parts of the Ukraine close to the Russian border."
"Tougher sanctions may act as more of a deterrent increasing the likelihood of a sharper economic slowdown in Russia. Capital continues to flow out of Russia with the rouble having declined by just over 10% against the US dollar so far in 2014 while the Russian equity market has declined by around 25%."
Key Quotes
"The yen has weakened modestly in the Asian trading session reversing gains recorded last week which were driven by heightened investor concerns over slowing economic growth in China and geopolitical risk related to ongoing developments in the Ukraine. As expected over the weekend, Crimea voted overwhelmingly to rejoin the Russian Federation in a referendum."
"According to the Crimean authorities, 95% voted to rejoin Russia on a turnout of 82%. Russian officials have made it clear that they view Crimea’s referendum as legitimate in contrast to the international community."
"It now remains to be seen as to whether Russia will choose to formally annex Crimea. Russia is set to face international sanctions following the referendum as soon as today with EU foreign ministers scheduled to meet in Brussels."
"The Russian central bank has reassured lenders that emergency liquidity measures used during the global financial crisis could be swiftly reactivated. With control of Crimea all but lost to Russia it remains to be seen as to whether it will choose to invade other parts of the Ukraine close to the Russian border."
"Tougher sanctions may act as more of a deterrent increasing the likelihood of a sharper economic slowdown in Russia. Capital continues to flow out of Russia with the rouble having declined by just over 10% against the US dollar so far in 2014 while the Russian equity market has declined by around 25%."