Ukraine's Currency Is Getting Smoked

The focus of this year's emerging-market currency turmoil is shifting to Ukraine today.

Citing traders, the WSJ reports the U.S. dollar was above 9.00 against Ukraine's hryvnia, a level not seen since February 2009.

Ukraine has been in political chaos in recent months with anti-government protestors clashing with police since November, which was when President Viktor Yanukovich walked away from a controversial trade deal with Europe.

"Russia, which bought $3 billion of Ukrainian bonds in December, has delayed the next tranche of aid to ensure its neighbor doesn't reverse President Viktor Yanukovych's rebuff of an EU cooperation deal," reported Bloomberg's Andras Gergely and Krystof Chamonikolas.

Bloomberg reports that the country's foreign currency reserves fell to around $18.8 billion in January from around $20.4 billion in December.

As the country spirals deeper into financial turmoil, the local currency and bonds have come under immense pressure.