The Russian ruble fell most of all currencies from emerging markets, while the yield on Russian government bonds rose after US strikes in Syria, which melted the hopes of improving relations between Moscow and Washington during the presidential mandate of Donald Trump. The Russian currency fell by 1.1% against the US dollar in early trade in Moscow, which was the sharpest decline in nearly a month. The president Vladimir Putin criticized the strikes as “aggression” and said that they would worsen relations.
The ruble depreciated by 0.91% to 56.9084 rubles to the US dollar. The CDS (credit default swaps) rose for the first time this week, stocks fell and yields on government bonds in rubles posted its biggest increase since February.
The recovering oil prices and higher real interest rates made the ruble one of the best performing currency among emerging markets this year. The Russian markets had upswing amid hopes for detente in relations with the United States in the management of Donald Trump. Hit Washington in response to the attack with chemical weapons earlier this week, probably the work of the regime of Bashar Asad, however, reduce the chances of such a detente.