Bad News, World Rating Agency Makes Russian Ruble More Fall!

Illustrations (doc. pixabay)

The exchange rate of the Russian currency, the ruble, against the US dollar, continued to decline and continued to record new record lows, at the end of trading Friday morning, March 4.

The negative sentiment mainly came from the decision of the two world rating agencies, Fitch and Moody's, which compactly lowered Russia's debt rating six notches at once, so that it was included in the 'garbage' category.

The decision was based on the assessment that with several international sanctions received, the Russian economy is believed to be in a slump and chaos, thereby reducing its ability to pay its debts.

As reported by Antara, the position of the ruble exchange rate ended at 106.01 per US dollar, at the close of trading, Wednesday, March 2, in Moscow.

This position became a record low, after the same day the previous intraday low was also created at the level of 118.35, after experiencing a decline of more than 10 percent.

On overseas markets, the ruble was also trading at 110 per US dollar, down 9.1 percent, with bids on other platforms close to 117 per US dollar.

“You know trading is thin when the UK central bank and the European Central Bank stop issuing quotes on the ruble”, said Brian Jacobsen, senior investment strategist for multi-asset solutions All spring Global Investments.

Jacobsen explained, that more economic damage will be done to the Russian economy, so the ruble sellers will be increasingly desperate. While on the other hand, potential buyers are also increasingly doubtful about the future of the currency.