Considered safe-haven currencies such as bitcoinand gold are struggling to gain momentum even as global markets are starting to show signs of cracks in the form of volatility in fiat currencies of troubled countries, an observer said.
The Russian ruble (RUB) depreciated to $102 against the dollar on Monday, its weakest level since March 2022.
The drop brought the year-to-date loss to 33% and forced the Russian ruble to weaken against the dollar. The central bank raised interest rates to 12% from 8.5% in an emergency move.
Meanwhile, Argentina devalued its already weak peso (ARS) by 18%, to 350 per dollar from 287 on Friday. The peso has fallen 98% this year.
The latest slide in the ruble and Argentine peso represents an early sign of stress in global financial markets, MUFG said.
Perhaps continued strength in nominal and inflation-adjusted U.S. government bond yields was one of the key factors behind the latest slide in the ruble and the Argentine peso, as well as a rise in the U.S. dollar index, which has held back gains for bitcoin and gold.