Russian rouble, stocks off lows after military mobilisation triggers slump

Putin's recent decree, televised address significantly escalated what Russia calls its "special military operation" in Ukraine



By Reuters

Published: Wed 21 Sep 2022, 1:07 PM

Last updated: Wed 21 Sep 2022, 1:20 PM

The rouble recovered from two months lows and Russian stocks pared losses on Wednesday after earlier plunges triggered by President Vladimir Putin's move to order Russia's first military mobilisation since World War Two.

Putin said he had signed a decree on partial mobilisation, significantly escalating what Russia calls its "special military operation" in Ukraine, and warned Moscow would respond with the might of all its vast arsenal if the West continued with what he called its "nuclear blackmail".

By 0859 GMT, the rouble was 0.2% stronger at 60.50 to the dollar, having dropped as far as 62.7975, its weakest point since July 7.

It reversed early losses to trade up 1.2% at 59.87 to the euro and rise 1.2% against the yuan to 8.546 .

The rouble has been the world's best-performing currency this year, buoyed by emergency capital controls rolled out by the central bank in a bid to halt a mass sell-off.

Putin's move wrought havoc on global markets too, with investors flocking to safe-haven assets and sterling hitting a new 37-year low against the dollar.

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