June 22, 2024

Fresh US sanctions on Russia with love – Russian market selloff

LQDFX news blog: Fresh US sanctions on Russia with love

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The Trump administration announced overnight that fresh US sanctions are to be imposed on Moscow.

Such sanctions were justified by speculations that Russians had used a nerve agent against a former Russian agent in Britain. However, Russia denies it and their embassy in the US denouncing the sanctions as illegal, unfriendly, “draconian”.

Putin has been trying to improve the damaged U.S.-Russia ties since Donald Trump won the US elections back in 2016. Trump prior to his long-awaited summit with Putin undertook the responsibility for US-Russia troubled relationship. He denounced past “U.S. foolishness and stupidity”.

However, the US President failed to hold Russian President Vladimir Putin accountable for meddling in the 2016 U.S. election. A political firestorm was triggered by critics, allied countries and even his own staff. Trump had the opportunity to publicly rebuke Putin during their joint news conference in Helsinki on July. He later said that he had misspoken, although he did not correct himself until 27 hours later.

This move of fresh us sent Russia currency market sharply lower as the traders were panicked. The Russian currency, the rouble, is on track for its deepest weekly fall since April and towards a 2-year lows.


Forex Market

The Dollar edged higher 0.2% against its major traded rivals as trade dispute is generally seen as beneficial for the greenback.

The Euro dropped against the greenback.

The Yen strengthened following reports that BOJ board members’ disagreement on rates during their policy meeting last week. The Japanese currency rose 0.2% against the dollar, to a 10-day peak.

The New Zealand Dollar fell more than 1% against the US dollar headed lower 0.1% to $0.6652, to a two-and-a-half year low. New Zealand’s central bank (RBNZ) on Thursday unexpectedly committed to keeping interest rates at record lows through to 2020.

The Sterling extended its losses on Thursday close to a one-year low against the dollar amid no-deal Brexit and lack of transition agreement. However, it strengthened against the single currency. The pound also dropped against the Yen and the Swiss Franc.

Oil prices rose supported as the first batch of US sanctions on Iran came into effect. Brent crude futures rose by 19 cents pb while US crude futures rose by 6 cents pb.

Gold prices and silver prices edged higher supported by slightly weaker dollar for this week.

Sources: Reuters, CNN money, bbc

PLEASE NOTE The information above is not investment advice.