Russian markets, ruble plummet on Ukraine fears

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MOSCOW (AP) — Russia’s stock market dropped about 10 percent
on Monday and its currency fell to its lowest point ever against the
dollar and the euro as worries grew over the potential economic
repercussions of the crisis in neighboring Ukraine.
Russia
intervened over the weekend to take control of Crimea, a Ukrainian
peninsula with strategic importance, and the new government in Kiev
fears a wider invasion. The West responded by questioning Russia’s
membership in the Group of Eight leading industrialized democracies, and
the U.S. threatened possible asset freezes and trade penalties.
The Moscow Exchange fell about 10 percent in the first hour of trading Monday, although it later
recovered slightly.
The
ruble, already down nearly 10 percent this year, fell below 50 to the
euro for the first time. It traded at 36.89 rubles to the dollar, also a
record, before stabilizing around 36.49.
The Bank of Russia
decided to temporarily increase the Bank of Russia key rate by 1.5
percentage points to 7 percent in an attempt to keep the currency’s fall
from driving up inflation. The central bank will hold its next meeting
on March 14.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.
MOSCOW (AP) — Russia’s stock market dropped about 10 percent
on Monday and its currency fell to its lowest point ever against the
dollar and the euro as worries grew over the potential economic
repercussions of the crisis in neighboring Ukraine.
Russia
intervened over the weekend to take control of Crimea, a Ukrainian
peninsula with strategic importance, and the new government in Kiev
fears a wider invasion. The West responded by questioning Russia’s
membership in the Group of Eight leading industrialized democracies, and
the U.S. threatened possible asset freezes and trade penalties.
The Moscow Exchange fell about 10 percent in the first hour of trading Monday, although it later
recovered slightly.
The
ruble, already down nearly 10 percent this year, fell below 50 to the
euro for the first time. It traded at 36.89 rubles to the dollar, also a
record, before stabilizing around 36.49.
The Bank of Russia
decided to temporarily increase the Bank of Russia key rate by 1.5
percentage points to 7 percent in an attempt to keep the currency’s fall
from driving up inflation. The central bank will hold its next meeting
on March 14.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.

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