Ukrainian currency plunges to its lowest level in 7 years
Ukrainian assets came under pressure on Tuesday after a sharp escalation of tension with Russia, which pushed the local currency to its lowest level in seven years.
According to "Reuters", the Ukrainian currency (UAH) fell by about 1.4 percent to 29.1196 against the dollar.
The UAH has lost about 10 percent since the end of October, when the escalation of the conflict with Moscow prompted investors to part with Ukrainian assets.
Ukraine's dollar-denominated sovereign bonds also tumbled.
It is noteworthy that this is the weakest level for the Ukrainian currency since its sharp decline in 2015, when the country rushed towards a debt restructuring.
Russia's formal recognition of Bologansk and Donetsk in eastern Ukraine late on Monday raised the specter of war in Europe's eastern flank and turmoil in global financial markets.
Russian President Vladimir Putin explained that the decision was made due to the unwillingness of the Kiev authorities to implement the "Minsk agreements" of the settlement in the southeast of the country.
Putin also referred to Kiev's armed provocations against the two republics, especially in the recent period, which are accompanied by strong Western threats against the Russian Federation.
Earlier today, President Putin instructed the Russian Defense Ministry to maintain peace in the Donetsk and Lugansk republics.
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