The Russian ruble is getting slammed amid US sanctions
- The ruble fell to its lowest level versus the dollar since 2016.
- The US hit Russia with new sanctions for the March chemical attack on a former Russian spy.
- Watch the rouble trade in real time here.
The Russian ruble plummeted to its lowest level against the dollar since 2016 on Thursday as Washington prepares to penalize Moscow for a chemical attack in the UK earlier this year.
The ruble was down 0.8% to 66.1101 against the dollar at 9:45 a.m. ET. It shed as much as 5% versus the dollar after the the State Department said it would impose new sanctions against Moscow for the March poisoning of former Russian spy Sergei Skripal and his daughter.
US and European allies have publicly blamed the Kremlin for attempting to kill the two in the British town of Salisbury using a Novichok nerve agent, a claim Russian President Vladimir Putin has denied.
The sanctions, set to go into effect later this month, target Russia's defense sector and could prevent hundreds of millions of dollars worth of equipment from reaching state-owned companies. A second round of tougher sanctions could be imposed in 90 days if Moscow does not meet a list of demands, the State Department said.
"Investors will likely ignore the Russian economic fundamentals in the weeks ahead and focus on political developments," said Hussein Sayed, chief market strategist at FXTM.
Turbulence in the oil market is also putting pressure on the currency, analysts said. Crude prices fell to a seven-week low Wednesday after data showed a smaller-than-expected drawdown in US stockpiles and as the US and China rolled out additional tariffs against one another, including on oil products.
The ruble is down 14.25% versus the dollar this year.
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