- USD/RUB clinches new all-time highs around 122.50.
- West sanctions continue to add pressure to the ruble.
- Russia-Ukraine talks expected to resume later on Wednesday.
The Russian ruble dropped to new all-time lows vs. the greenback and pushed USD/RUB to levels above 122.00 midweek.
USD/RUB higher on geopolitics, sanctions
The Russian currency remains well under heavy pressure on the back of increasing concerns over the situation in the Russia-Ukraine front at the time when the second round of negotiation talks has kicked in in Belarus on Wednesday.
The outlook for RUB deteriorated further following recent West sanctions that severed many Russian lenders from the Belgian-based SWIFT system. In addition, Russian largest bank Sberbank announced its withdrawal from all European markets in response to large cash outflows and threats both to staff and property.
USD/RUB levels to watch
So far, the pair is up 2.30% at 116.67 and faces the next hurdle at 122.25 (all-time high Mar.2). On the downside, a breach of 90.00 (monthly high Feb.24) would aim for 78.08 (55-day SMA) and finally 74.37 (200-day SMA).