UAH/RUB: Ukrainian hryvnia records 3 consecutive days of gains
- Ukrainian hryvnia outperforms Russian ruble
- The ruble plunges in the tightening of sanctions
- Russian banks banned from SWIFT
- Russia’s economic data under the eyes
On the foreign exchange market, the value of the Ukrainian Hryvnia appreciated on Wednesday for three consecutive days, standing at +4.73% at 3.5281 against the Russian ruble. The UAH/RUB exchange rate was seen Thursday morning in a trading range of an intraday low of 3.3101 and a high of 3.8423, on track for four consecutive days of gains.
The Russian ruble remains sensitive to risk sentiment as Western sanctions storm the Russian economy. Amid increased sanctions and the banning of 7 Russian banks from the SWIFT messaging system on Wednesday; the Russian ruble is scrambling to find an offer.
In the short term, the escalation of the conflict in Ukraine will continue to trigger an extremely volatile exchange rate.
Global risk sentiment was subdued despite the uncertainty caused by the Russia-Ukraine conflict, which sent gold down -0.92% to $1928. At the same time, US equity indices rose sharply, with the S&P 500 gaining 2.00% to settle at 4392.
Russia’s unemployment rate edged up to 4.4% in January, illustrating a tight labor market.
Today’s key economic data from Russia includes the Markit Composite PMI and the Markit Services PMI – both are expected to grow at a slower pace.