The rouble plunged nearly 30% to an all-time low versus the dollar on Monday, while the euro sank after Western nations announced fresh sanctions to punish Russia for its invasion of Ukraine https://www.reuters.com/world/india/war-with-ukraine-putin-puts-nuclear-deterrence-forces-alert-2022-02-27, including blocking some banks from the SWIFT international payments system.
Safe-haven currencies including the U.S. dollar and yen were in demand after Russian President Vladimir Putin put nuclear-armed forces on high alert on Sunday, the fourth day of the biggest assault on a European state since World War Two.
The rouble dropped to as low as 119 per dollar RUB=EBS , and was last down 28.77% at 118.
The euro EUR=EBS declined 0.76% to $1.11855, after earlier falling as much as 1.34%. The single currency lost 0.73% to 129.265 yen EURJPY=EBS , and was 0.60% lower at 1.03665 Swiss franc EURCHF=EBS .
"The escalating crisis in Ukraine will force markets to price in a substantially higher geopolitical risk premium, (and) that is going to leave safe havens like the USD bid," Westpac strategists wrote in a client note.
"The Ukrainian situation is volatile, and so too is market sentiment, although a risk-averse backdrop near term appears the most prudent assumption," meaning more downside for Australian and New Zealand dollars, they said.
The Aussie slid 0.75% to $0.7183 AUD=D3 , while New Zealand's kiwi sank 0.79% to $0.66915 NZD=D3 .
Sterling GBP=D3 was off 0.29% at $1.33695.
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