Ukraine's currency plunges as ceasefire fears grow


  • World
  • Tuesday, 11 Nov 2014

Smoke rises above an old terminal (L) and an administrative building of the Sergey Prokofiev International Airport after the recent shelling during fighting between pro-Russian separatists and Ukrainian government forces in Donetsk, eastern Ukraine, November 9, 2014. REUTERS/Maxim Zmeyev

KIEV/DONETSK Ukraine (Reuters) - Ukraine's currency lost nearly 5 percent of its value on Monday after a weekend that saw the heaviest shelling in a month hit the main rebel stronghold in the east and signs that Moscow had dispatched troops and tanks to reinforce separatists.

The prospect that a two-month-old ceasefire could collapse and all-out war return to eastern Ukraine has weighed down the economy and helped drive the currency 12 percent lower since the central bank abandoned an unofficial peg a week ago.

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