Putin said he had signed a decree on partial mobilization, dramatically stepping up what Russia calls its “special military operation” in Ukraine, and warned that Moscow would respond with the might of all its vast arsenal if the West continued. what he called his “nuclear blackmail”. “.
At 0859 GMT, the ruble was 0.2% stronger at 60.50 to the dollar, after falling as low as 62.7975, its weakest point since July 7.
It reversed early losses to trade up 1.2% at 59.87 per euro and 1.2% against the yuan at 8.546.
The ruble has been the world’s best-performing currency this year, buoyed by emergency capital controls put in place by the central bank in a bid to stop a sell-off.
Putin’s move also wreaked havoc on global markets, with investors flocking to safe-haven assets and the pound hitting a new 37-year low against the dollar.
STOCKS EXTEND LOSS
Russian stock indices fell, extending a decline that began on Tuesday as rumors of a possible mobilization spread, with energy giants Rosneft and Gazprom at one point losing around 12% each, before falling set at around 4.7% and 2.6% lower respectively.
The ruble-based MOEX benchmark hit its lowest point since Feb. 24, the day Russia sent tens of thousands of troops to Ukraine, before cutting some losses.
Analysts at Tinkoff Investments said it was the biggest drop in the MOEX since Feb. 24, when the index lost more than 30% in one day.
The MOEX index fell 2.4% to 2,162.4 points, after hitting a low of 2,002.73 points. The dollar-denominated RTS index fell 2.6 percent to 1,124.5 points, after earlier hitting its lowest since April 27.
(Reporting by Alexander Marrow Editing by Mark Heinrich and Mark Potter)
By Alexandre Moelle