USD/RUB: Russian ruble at December 2016 low as US grip on oligarchs tightens

• Russian ruble keeps falling lower against the US Dollar for the third consecutive day.
• Selloff accelerated after US Congress banned the purchase of Russian debt.

Russian ruble is trading down more than 3.2% at around on Wednesday with loses extending to 11.4% since the beginning of this week as investors are concerned about the US sanctions extending further against Russian companies.

Widespread pessimism among investors extended to Russian bonds with yields on ruble-denominated debt rose to the highest level this year while ruble fell to the lowest level since December 2016. Foreign holders of the Russian debt accounted for about one third or 34%  of Russia’s local-currency sovereign bonds before the current selloff began this week.

The Russian ruble remains under severe selling pressure for the third trading day in a row after the US administration tightened its grip on Russian billionaires imposing sanctions and trade bans on particular companies. With the US Congress passing the bill that would ban the purchase of Russian sovereign bonds.

USD/RUB daily chart

.