Russian markets are jumping as fears of sanctions fade
Russia’s rouble has gained 1.4 per cent against the dollar today – its second-largest gain this year and the most among emerging markets today.
That, in the midst of the ongoing Ukraine crisis, and the threat of more sanctions from the West.
The currency's now risen 2.7 per cent versus the dollar since its lowest point earlier this month.
Source: Google
Moscow’s Micex index has also made gains today – rising 1.1 per cent, making up for some of the losses its suffered since Russia entered the Crimea. It’s currently up 0.2 per cent at 1,345.
Hopes are that the US and EU will steer clear of tougher sanctions. Fears that they would be imposed on energy exports have wobbled markets considerably, but Vladimir Putin’s pledge not to enter Easter Ukraine last week, along with Kiev’s downplaying of the prospect of joining NATO have salved things somewhat.
Investors, alongside others, remain wary of the situation, though. The Russian government’s braced for $70bn capital outflows in just the first three months of the year – that’s over $63bn more than last year.
And safe-haven asset gold’s entered a second losing week – central bank buying is nearing the $1,180s lows, with the Russia-Ukraine situation the most frequently-cited factor.