Russian Ruble Pummeled by Flynn Reports
Chelsey Dulaney
Dec 1, 2017 12:24 pm ET
The Russian ruble fell sharply Friday after an ABC report that former national security adviser Michael Flynn is prepared to testify against President Donald Trump in the ongoing Russia investigation.
“The market is taking the view that Russia is in the hot seat,” said Brad Bechtel, a managing director at Jefferies Group. The U.S. relationship with Russia “could be under pressure going forward.”
Mr. Flynn pled guilty Friday morning to lying to the FBI about his communications with the Russian ambassador to the U.S. in December 2016. But U.S. stocks, bond yields and the dollar slid after an ABC report that Mr. Flynn is now promising full cooperation with the special prosecutor investigating the matter and is prepared to testify that Mr. Trump, when a candidate for president, “directed him to make contact with the Russians.”
The widening investigation into Russian meddling in the 2016 election has raised uncertainty about the future of U.S.-Russia trading relationships and led to sanctions that analysts say could impact Russia’s economy.
The ruble’s 1% slide against the dollar is notable due to the U.S. currency’s sharp decline against most other peers in the wake of the ABC report. Analysts say the report injects fresh uncertainty over the path for U.S. policy as Republicans are also attempting to pass a tax bill that is expected to support economic growth.