Economics
Ruble Drops to 2016 Low as Traders Ask How Far Sanctions Will Go
- Investors with overweights rushing for exit all at once: UBP
- U.S. announced new sanctions on Wednesday over U.K. attack
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The ruble extended its steepest slide in almost two years as a fresh round of U.S. sanctions against Russia deepened concern about what could be targeted next.
Investors who had been building long positions in the currency earlier in the summer rushed for the exit, causing a two-day plunge of as much as 5.1 percent. Analysts at Citibank said it looks like traders are already pricing in a worst-case scenario of sanctions on banks and new sovereign debt.