Ruble Trims Weekly Drop after Russia Warplanes End Drills near Ukraine Border

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Ruble Trims Weekly Drop after Russia Warplanes End Drills near Ukraine BorderRussia’s ruble trimmed a weekly loss on Friday after Russia’s Defense Ministry announced that its warplanes had stopped conducting drills near Ukraine. The ruble plunged 1 percent to close at 41.6835 against the central bank’s benchmark pool of euros and dollars, its second weekly drop.

The Russian currency declined on fears that the sanction wars between Russia and the U.S. and the European Union may weigh on economic growth. Russia banned the importation of beef, cheese, dairy products, fruit and vegetables and fish from the European Union, U.S., Australia, Norway and Canada for a year in retaliation for sanctions against Russian industries. Moscow is also considering banning Western airlines from using Siberian airspace, reported Bloomberg News.

Meanwhile, the pound declined for the fifth straight week after U.K. exports fell while the Bank of England retained its record-low borrowing costs. The sterling fell 0.3 percent in the week through Friday to $1.6773, and touched $1.6767, which was close to the lowest level in two months.

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U.K.’s trade deficit rose to 9.4 billion pounds ($15.8 billion) in June from 9.2 billion pounds a month earlier. The trade gap in the second quarter reached 27.4 billion pounds, the biggest such since the quarter ended September 2013. The pound also touched an eight-week low after BOE policy makers retained the benchmark interest rate at 0.5 percent.

The Israel’s shekel fell 1.4 percent last week after the three-day Gaza truce expired in violence, with Israeli warplanes conducting bombing raids after Palestinian insurgents fired rockets into Israeli territory. The shekel traded at 3.47 per dollar in Friday’s close, in what was its biggest weekly decline since the weekly session through May 17. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com