The ruble collapsed to 2.5-month lows of around 62.80 rubles/$ after Putin’s announcement of partial mobilization. The dollar index hit 20-year highs on Wednesday. The Moscow Exchange Index has been falling to lows since February 24 near 2,000 points. President Vladimir Putin said in a special video message on Wednesday morning that he had signed a decree on partial mobilization. According to him, this will affect only the military personnel of the reserve. Measures to implement the decree begin on September 21, Interfax writes. Putin added that if its territorial integrity is threatened, Russia will use all available means, this is not a bluff. The President of the Russian Federation also warned those trying to blackmail Russia with nuclear weapons: the wind rose could turn in their direction. After a short-term failure at the beginning of the session, the ruble won back all the decline. The Russian currency is supported by sales of foreign exchange earnings by exporters during the ongoing tax period. The Moscow Exchange Index leveled off more than half of the morning decline. In the current environment, the ruble may show an increased level of volatility, according to the bank of St. Petersburg. The factor of the tax period may still hold back the rate of the USD/RUB currency pair from rising above 63 rubles/$. The closest reference point for the dollar/ruble pair is 65 rubles/$, according to the BCS. There are risks of secondary sanctions on energy exports, which could worsen the country’s trade balance and weaken the ruble. If we consider the purchase of currencies, we must take into account geopolitical realities and the risks of termination of settlements. On October 3, trading in the British pound is suspended. Earlier, the franc and yen left the Moscow Exchange. Therefore, it is more expedient to place assets in the Chinese yuan and the Hong Kong dollar, experts say. Source: FXPro

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