Forex Market: USD/RUB surges the most in a week amid pro-Russian protests in Ukraine

The Russian ruble fell the most in almost a week as pro-Russian protests in three eastern Ukrainian cities, prompted the Ukrainian authorities to accuse Russian President Vladimir Putin of fueling separatist disorder.

USD/RUB touched a daily high at 35.751 at 11:15 GMT, after which consolidation followed at 35.619, adding 0.74% for the day. Support was likely to be received at April 2nd, 35.055, while resistance was to be met at March 31st high, 35.807.

The Micex Index fell 2.6 percent to 1 346.36 and has declined 10.5 percent so far this year.

Russias annexation of Crimea at the beginning of last month, triggered a massive sell-off of the Russian currency and equities of the country.

Rubles demand continues to be pressured by simmering tensions between Russia and the West, in what turns out to be the worst conflict between the two parties since the end of the Cold War. Pro-Russian protesters gained control over state buildings in three eastern Ukrainian cities on Sunday. Kiev’s pro-European government accused Russian President Vladimir Putin of fueling separatist disorder.

The US and the European Union have imposed sanctions, which include asset freezes and visa bans, on individuals closely tied to President Putin and are threatening broader economic penalties, if Moscow continues its course.

Britain asked its European partners last week to continue with the preparation of economic sanctions against Russia as a large portion of Russian troops remained amassed near Moscow’s border to Ukraine.

Meanwhile, greenback’s demand continued to be pressured after payrolls data on Friday came below market expectations.

Employers in all sectors of the US economy, excluding the farming industry, added 192 000 new jobs in March, after a revised 197 000 gain in the precious month that was higher than previously reported. The median experts’ forecast called for 200 000 new payrolls to be added last month. Jobs creation is considered of utmost importance for consumer spending, which accounts for almost 70% of the US economy.

In 2013, the US added 194 000 payrolls each month on average, while in 2012 the jobs created were 186 000.

During the week ahead investors’ attention will be focused on the minutes from the March 18-19 Fed policy meeting, due to be released on April 9. The Federal Open Market Committee, which cut monthly asset purchases by $10 billion at each of its past three meetings, is set to reconvene at the end of the month.