- The Russian ruble is down 4.1% against the dollar on Tuesday morning.
- It follows a slide of more than 4% on Monday after the US imposed sanctions late on Friday night.
- Analysts say there is a “high” risk tensions between the US and Russia escalating further.
LONDON – The Russian ruble is falling against the dollar on Tuesday as the currency continues to reel from US sanctions imposed by the Trump administration.
The ruble is down 4.1% against the dollar at 2.20 p.m. GMT (9.20 a.m. ET). It follows a fall of more than 4% against the dollar on Monday after the Trump administration on Friday imposed new sanctions on 24 wealthy Russians and government officials, as well as over a dozen Russian-controlled entities.
Hussein Sayed, the chief market strategist at FXTM, said in an email on Tuesday morning: “The new geopolitical risks over the increased conflict in Syria cannot be ignored. This came after the U.S. imposed a wide range of financial sanctions on Russian assets, causing stocks to suffer their worst performance in four years and the ruble falling as much as 4.1%.
“Russia warned the U.S. that any military reprisal to Saturdays’ chemical attack in Syria could have ‘grave repercussions’. Will U.S. and Russia go into a confrontation in Syria? This likely depends on Trump’s decision over the next 24 hours, but the risks are high.”
Michael Hewson, the chief market analyst at CMC Markets UK, noted in an email that John Bolton started as President Trump’s new national security advisor on Monday, potentially raising the likelihood of confrontation between the US and Russia.
“Coming on the back of events in Salisbury last month and the use of a nerve agent there, and the fact that renowned Russia hawk John Bolton started his role as National Security Advisor in the White House yesterday, the risk is that last weekend’s measures may only be the start to financially ostracize Russia,” Hewson said.
Ivan Glasenberg, the CEO of London-listed commodities trader Glencore, on Tuesday resigned from the board of Russian aluminium producer Rusal in response to the US sanctions. The company’s stock fell 8.9% in response.