Russia and Ukraine turmoil: how the currency markets are reacting
The Ukrainian hryvnia and Russian ruble have each taken a hit in recent days as the stand-off intensifies between the troubled two countries. Last week the BBC’s World Economics correspondent Andrew Walker told how the Ukrainian currency has hit a 10-year low , and just yesterday the Russian ruble fell to an all-time low against the US dollar and the euro as investors seek to move their money to safer retreats amid the growing crisis in Ukraine.
When not to buy
So how does this affect you if you want to buy Ukrainian hryvnia or Russian rubles? Our analysis of the travel money markets shows that actually despite the headlines, the outlook might not be as bad as it sounds.
If you want Russian rubles the news is good. The ruble rate is currently 5% higher than it was a month ago thanks to the weakening ruble which has increased from 54.78 to 57.56 against the pound. In real money this means £750 will buy you just over two thousand rubles more today than it would have on the 5th February:
If you want Ukrainian hryvnia the news isn’t so good. The hryvnia rate has dropped by 2.4% against the pound from 13.28 last month to 12.97 today which means £750 will buy you 240 hryvnia less today than it would have a month ago:
Our data comes directly from the currency suppliers themselves and is representative of the tourist rates currently on offer. The upshot is that despite recent headlines, the currency markets have been fairly resilient to the on-going turmoil affecting both countries, and while there are fluctuations in both exchange rates there is no reason to suggest that now is not a good time to buy either.