Russia's rouble currency has fallen to a record low in thin offshore trading.
The rouble weakened to 133.5 to the U.S. dollar after closing at 121.037 last Friday (March 4), according to Refinitiv data.
Bid/offer spreads for the Russian currency were between 10 and 15 cents, pointing to an increasingly illiquid market. Trading on the MOEX Moscow exchange remains closed following Russia’s invasion of Ukraine.
The rouble has lost more than 40% of its value against the greenback since the start of the year, with losses sharply accelerating since Russia invaded Ukraine on February 24, which has led to sweeping sanctions from Western nations, including Canada.
The curbs on Russia, its lenders, corporations, and key individuals, as well as counter measures from Moscow, have cut Russian assets increasingly out of global financial markets and have made it tricky for investors to trade any securities.
Rouble implied volatility gauges, which are a measure of demand for options on the currency rising or falling against the dollar, have stayed near record highs since last week, with the one-week gauge above 84% and the one month one above 94%.
The rouble's collapse has also hit trading volumes. Turnover on the Russian currency has fallen more than 80% compared to the end of February.
