Ukraine hryvnia at 7-yr low after Moscow recognises separatist regions By Reuters

© Reuters. FILE PHOTO: Ukrainian hryvnia banknotes are seen in a photograph illustration shot in Kiev, Ukraine, August 6, 2014. REUTERS/Konstantin Chernichkin/Ullustration

By Natalia Zinets

KYIV (Reuters) -Ukraine’s property got here underneath strain on Tuesday after a pointy escalation of tensions with Russia, sending the hryvnia tumbling to ranges final seen in 2015 when the nation was headed for default.

Russia’s formal recognition of two breakaway areas in jap Ukraine late on Monday has raised the spectre of struggle on Europe’s jap flank and rattled international monetary markets.

Ukraine’s hryvnia weakened as a lot as 1.4% to 29.1196 to the greenback – its weakest degree for the reason that foreign money dropped sharply in 2015 because the nation hurtled in direction of a debt restructuring.

The foreign money has weakened practically 10% since end-October, when the battle with Moscow intensified as traders ditched Ukrainian property amid rising considerations over a Russian troop buildup close to Ukraine’s borders and fears Russia is making ready for a navy assault in opposition to Ukraine. The Kremlin has denied that.

Ukraine’s dollar-denominated sovereign bonds additionally stumbled.

Its 2032 bond dropped 2 cents within the greenback to commerce at a report low of 71.694 cents, Tradeweb information confirmed. Ukraine’s 2040 GDP-linked bond slipped greater than 3 cents to commerce at 58.303 cents, having misplaced round half its worth since June final 12 months.

Dennis Shen at Scope Scores in Berlin stated an extra escalation might strain Ukraine’s credit standing.

“There may be nonetheless plenty of out there situations, together with these observing de-escalation so long as negotiations proceed,” Shen stated in emailed feedback. “Nonetheless, such situations have narrowed in view of Russia’s most up-to-date actions.”

Disclaimer: Fusion Media want to remind you that the information contained on this web site is just not essentially real-time nor correct. All CFDs (shares, indexes, futures) and Foreign exchange costs usually are not offered by exchanges however relatively by market makers, and so costs is probably not correct and should differ from the precise market value, which means costs are indicative and never acceptable for buying and selling functions. Subsequently Fusion Media doesn`t bear any duty for any buying and selling losses you would possibly incur because of utilizing this information.

Fusion Media or anybody concerned with Fusion Media won’t settle for any legal responsibility for loss or injury because of reliance on the knowledge together with information, quotes, charts and purchase/promote alerts contained inside this web site. Please be absolutely knowledgeable concerning the dangers and prices related to buying and selling the monetary markets, it is among the riskiest funding types attainable.

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button