Russia’s central bank said Thursday that it would start interventions in the foreign-exchange market after the ruble plunged to a record low in the hours after troops invaded Ukraine.
The Russian ruble fell 6% against the U.S. dollar early Thursday, with one dollar buying 86 rubles–the lowest level on record, according to FactSet.
Investors sold Russian assets across the board as missiles and air strikes hit Kyiv and more than a dozen other cities across Ukraine. Trading resumed on Moscow’s stock exchange, which had prior suspended trading early Thursday morning, around 10 a.m. Moscow time. The country’s benchmark index, the MOEX, dropped almost 14%.
Russia holds a formidable warchest of more than $600 billion in foreign-exchange reserves and gold that it can use in currency markets to prop up the ruble. A rapidly depreciating currency makes it harder to pay off foreign debts and leads to higher prices on imported goods.
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