Ruble Declines Further On News of Malaysian Plane Crash in Ukraine


Ruble Declines Further On News of Malaysian Plane Crash in UkraineThe Russia’s ruble lost further ground against the U.S. dollar on Thursday, while the dollar fell as investors rushed for safer assets on news that a Malaysian Airlines jet had been felled in Ukrainian airspace.

The passenger jet fell in eastern part of Ukraine today, with no reported survivors. This has heightened tensions in the conflict in which the West and Russia are supporting the warring sides. Already, investors had lifted the yen to its highest level in five months versus the euro after the West rolled out additional economic sanctions on Moscow.

The dollar traded 1.8 percent higher at 34.56 rubles in a session that saw the Russian currency record its largest intraday decline since June 2013. The currency was last trading at 35.18 rubles.


“It’s weaker in terms of the price in response to the unfortunate airline news,” Shaun Osborne, a Toronto-based currency strategist at TD Securities told Reuters.

The dollar was weighed by a decline in yields on U.S. Treasuries. It fell 0.02 percent versus the euro and also dropped 0.4 percent against the Japanese yen at 101.28 yen. The euro fell versus the yen to trade at 136.93 yen and last traded 0.4 percent weaker at 136.87 yen.

The U.S. Treasury yields, which help attract dollar buyers, plunged on Thursday. The U.S. target 10-year Treasury note saw its yield decline to 2.47 percent. The Treasuries gained after data showed that jobless claims fell while housing starts declined 9.3 percent.

The German Bunds, which are safer assets during tumultuous times, saw demand go up after Washington imposed further sanctions on Russian companies such as oil firm Rosneft and Novatek, a natural gas producer. To register for a free 2-week subscription to ForexMinute Premium Plan, visit

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