Ruble Tumbles Again http://www.theforexnittygritty.com/forex/ruble-tumbles-again The ruble tumbles again as paid provocateurs take over buildings in cities in the eastern Ukraine and demand referendums to make the largely Russian speaking eastern parts of the Ukraine Russian. As reported in the online Binary Tribune, the USD/RUB surges due to unrest in the eastern Ukraine. Russia’s annexation of Crimea at the beginning of last month triggered a massive sell-off of the Russian currency and equities of the country. Ruble’s demand continues to be pressured by simmering tensions between Russia and the West, in what turns out to be the worst conflict between the two parties since the end of the Cold War. Pro-Russian protesters gained control over state buildings in three eastern Ukrainian cities on Sunday. Kiev’s pro-European government accused Russian President Vladimir Putin of fueling separatist disorder. If Russia continues to fuel unrest in its neighbor things will probably get worse for the Ruble. Both the USA and EU have imposed a number of sanctions, freezing assets of close associates of Russian president Putin. Britain is asking the EU and USA to ramp up sanctions further which is likely to happen if Russian does not remove the troops massed on the Eastern border of Ukraine. Inflation as Well When the value of a currency falls it does not just fall in relation to other currencies. It falls in relation to commodities as well. This applies to imports but also to things produced locally. Thus it is no surprise that as the ruble tumbles again that inflation has hit a nine month high in Russia. Inflation in Russia in the month of March was the highest in nine months, fuelled by the decline of the ruble as the country faced off against the West over the Ukraine crisis. Consumer prices grew 6.9 percent from a year ago, up from a gain of 6.2 percent in February, according to the Federal Statistics Service in Moscow. This exceeded the average estimate of a growth of 6.8 percent in a Bloomberg survey of 18 economists. Prices plunged 1 percent in March, against forecasts of 0.9 percent as the economy slid further. The ruble plunged as Russia entered into its biggest standoff against the West since the Cold War, making it harder for the central bank to keep inflation under 5 percent.

1.  
Ruble Tumbles Again

2. The ruble tumbles again as paid provocateurs take over
buildings in cities in the eastern Ukraine and demand
referendums to make the largely Russian speaking eastern
parts of the Ukraine Russian.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

3. As reported in the online Binary Tribune, the USD/RUB
surges due to unrest in the eastern Ukraine.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

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5. Russia’s annexation of Crimea at the beginning of last
month triggered a massive sell-off of the Russian currency
and equities of the country.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

6. Ruble’s demand continues to be pressured by simmering
tensions between Russia and the West, in what turns out to
be the worst conflict between the two parties since the end
of the Cold War. Pro-Russian protesters gained control
over state buildings in three eastern Ukrainian cities on
Sunday. Kiev’s pro-European government accused Russian
President Vladimir Putin of fueling separatist disorder.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

7. If Russia continues to fuel unrest in its neighbor things will
probably get worse for the Ruble. Both the USA and EU
have imposed a number of sanctions, freezing assets of
close associates of Russian president Putin. Britain is
asking the EU and USA to ramp up sanctions further which
is likely to happen if Russian does not remove the troops
massed on the Eastern border of Ukraine.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

8. Inflation as Well
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

9. When the value of a currency falls it does not just fall in
relation to other currencies. It falls in relation to
commodities as well.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

10. This applies to imports but also to things produced locally.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

11. Thus it is no surprise that as the ruble tumbles again that
inflation has hit a nine month high in Russia.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

12. Inflation in Russia in the month of March was the highest in
nine months, fuelled by the decline of the ruble as the
country faced off against the West over the Ukraine crisis.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

13. Consumer prices grew 6.9 percent from a year ago, up
from a gain of 6.2 percent in February, according to the
Federal Statistics Service in Moscow. This exceeded the
average estimate of a growth of 6.8 percent in a Bloomberg
survey of 18 economists. Prices plunged 1 percent in
March, against forecasts of 0.9 percent as the economy
slid further.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

14. The ruble plunged as Russia entered into its biggest
standoff against the West since the Cold War, making it
harder for the central bank to keep inflation under 5
percent.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

15. One certainly hopes that the worst relations between
Russia and the West since the Cold War will improve.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

16. However, to the extent that Mr. Putin is playing to his
conservative constituency, he may just continue to poke at
an essentially defenseless Ukraine while the West can only
talk and ramp up sanctions.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

17. However, if the sanctions make inflation worse it will not
play well in the hinterlands of Mother Russia and could well
be the factor that brings Mr. Putin to his senses before the
ruble tumbles again, and again and again.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

18. Merkel Speaks
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

19. In a recent speech German Chancellor Merkel says that no
one should doubt EU resolve on Russian sanctions.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

20. As reported in Reuters, the German leader noted that if
Russian continues on its present course further sanctions
will come.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

21. "If the territorial integrity of Ukraine continues to be
violated, then we will have to introduce economic
sanctions," Merkel told a congress of her Christian
Democratic Union (CDU), kicking off its campaign for
European Parliament elections next month.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

22. "Nobody should doubt this. We are all different in Europe,
but we have the good fortune of being united, and together
we will take this decision," said the leader of Europe's
biggest economy which has close ties to Russia and has
played an influential role in shaping the West's response to
the crisis.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again

23. Forex traders will want to follow events closely if they wish
to trade the USD/RUB pair as the ruble tumbles again and
again.
http://www.theforexnittygritty.com/forex/ruble-tumbles-again