USD/RUB corrects from fresh daily highs as Ukraine crisis escalates

• USD/RUB corrects a portion of the start of the week's rally. 
• Russia and Ukraine crisis forces RUB lower, all eyes on West response to Kremlin's latest move.

USD/RUB is down 0.18% on the session as the US dollar cools off following a frantic day of headlines related to the Ukraine crisis that saw the pair rally to fresh daily highs of 80.7170. USD/RUB is currently trading at 80.2140 after touching a corrective low of 80.1370.

Growing concerns about Russia-Ukraine tensions helped the US dollar rally to a fresh two-week high vs a basket of currencies measured by the DXY index. The Kremlin said there were no concrete plans for a summit over Ukraine between the Russian and US presidents and then Vladimir Putin signed a decree that recognises Donetsk and Luhansk in Eastern Ukraine as independent states. Additionally, Putin ordered troops to move into the region on a peacemaking patrol. 

The West is responding with sanctions. President Biden signed an executive order Monday imposing sanctions that target two Russia-backed breakaway republics in eastern Ukraine. ''The order bars "new investment, trade and financing by US persons to, from, or in" the so-called Donetsk People's Republic and Luhansk People's Republic, located in Ukraine's eastern Donbas region, White House press secretary Jen Psaki said in a statement,'' CBS News reported. 

Additionally, in a brief statement, European Council President Charles Michel and European Commission President Ursula von der Leyen said they "condemn in the strongest possible terms the decision by the Russian President to proceed with the recognition of the non-government-controlled areas of Donetsk and Luhansk oblasts of Ukraine as independent entities."

USD/RUB daily chart