AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

The Russian rouble bounced from a record low on Friday, but eyed its worst week in two years and stocks in the region were set for record weekly declines after Russia's all-out invasion of Ukraine.

Ukrainian President Volodymyr Zelenskiy pleaded with the international community to do more to help, as missiles pounded Ukraine's capital city Kyiv, saying sanctions announced so far were not enough.

Western countries including the United States and the European Union unveiled financial sanctions on Moscow billed as far stronger than earlier measures, including blacklisting its banks and banning technology imports.

But they stopped short of forcing Russia out of the SWIFT system for international bank payments.

The rouble rose 2.7% against the dollar, as the central bank announced FX interventions for the first time since 2014 on Thursday. Still, the currency is set for a weekly decline of nearly 6%, its worst week since March 2020.

"Russian companies and the Russian government can no longer obtain financing on Western capital markets. What looks like a harsh measure may only be symbolic," said Ulrich Leuchtmann, head of FX and commodity research at Commerzbank.

Leuchtmann added Russia's economy is state-led which is more dependent on foreign capital, but warned of substantial damage if Russian banks were to be disconnected from the SWIFT system.

Russian stocks also cratered, with the dollar-denominated RTS index tumbling over 32% for the week and the rouble-denominated MOEX index down about 28% for the week. Both indexes tracked for their worst weekly declines in history.

More Russian central bank action is awaited to address high inflation. An unplanned interest rate hike remained on the table, as it did in late 2014, when Russia annexed Crimea from Ukraine.

Russian sovereign dollar bonds extended gains after Thursday's selloff, according to Tradeweb.

J.P.Morgan downgraded its view on emerging market currencies in Europe, Middle East and Africa regions to "underweight" from "market weight" on global market ramifications from Russia's invasion of Ukraine.

Most currencies in Latin America edged higher after Thursday's steep selloff, with an easing dollar also contributing to gains.

Chile's peso added 1.3% to lead gains in the region, while Mexico's peso rose 0.7%. The MSCI's Latam currencies index rose 0.4% after clocking its worst day since September 2020 the previous session.

Brazil will support a resolution condemning Russia's invasion of Ukraine at a UN Security Council meeting on Friday, two sources close to the talks told Reuters. The Brazilian real shed 0.5%.

Separately, final gross domestic product (GDP) data showed Mexico's economy posted no growth in the fourth quarter from the previous three-month period in seasonally adjusted terms.

Comments

Comments are closed.