Imagine your currency depreciating by 80% and from there from 80 to 140, appreciating by 50 odd % all in one month. Russia has just witnessed that.
One may argue that it was due to war but if we are going to see the trend of geopolitical tensions and wars ( do note that major wars don’t end in a month or two but stretch for years)
Are we going to witness extraordinary movement in currencies like stocks and cryptos going forward? I’d take that bet.
Read these two articles. Russia is trying to go back to Gold standard. No wonder western world is kind of confused as to what to do next.
Russia really seems to be prepared and is making moves according to their strategy
Some Monthly Updates :
Euro is near 5 year low and is near 1.05 against dollar. Depreciating more than 5% this month
Japanese Yen, too is trading at 5 year lows at 129++ against dollar. Depreciating more than 5% this month.
Ruble is trading at 2 yearly highs against Euro
Chinese yuan rapidly fell in the last week having their worst week since 2015 yuan devaluation, Closing at yearly lows.
Consequently, Dollar Index is now at 5 yearly highs due to the above reasons.
Euro is getting extremely weak and is at the risk of breaching the key parity level mark against dollar (only 5% away) which was last seen in 2002.
Awesome! I can import more things from EU.