Ukrainian hryvnia loses 1 percent after Moscow recognizes separatist territory

The Ukrainian hryvnia banknote can be seen in the photographic illustration taken in Kiev, Ukraine on August 6, 2014. (KonstantinChernichkin / Reuters)

Kiev — Refinitiv data show that Ukraine’s hryvnia currency has fallen by more than 1% since the start of the trade session on Tuesday after Russia officially recognized the independence of the two regions of eastern Ukraine.

Interest rates fell below $ 29 and returned to last month’s levels. In February, the hryvnia strengthened slightly, approaching 28 / $ 1 in the hope that fierce diplomatic negotiations would lead to a peaceful resolution of the eight-year-old conflict in eastern Ukraine.

The currency has fallen about 6.5% since the beginning of the year due to the outflow of foreign capital, as concerns about the movement of Russian troops near the Ukrainian border have increased and Russia is afraid of preparing for a military attack on Ukraine. The Kremlin denied it.



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