The Russian ruble and euro sank to multi-year lows as Russia-Ukraine conflict weighs on the region’s growth plans. The ruble continued its decline, hitting record lows against major currencies, after rating agencies Fitch and Moody’s cut Russia’s sovereign debt to “junk” status due to the impact of Western sanctions. The Russian currency was nearly 10pc weaker against the US dollar and 7pc against the euro on the Moscow Exchange. On the other hand, the euro fell to a seven-year low versus the Swiss franc and hit its lowest point in almost two years versus the dollar on Friday. The European single currency has fallen 2.1 percent this week and is set for its worst week since April 2020. Analysts said the effects of surging energy and gas prices will likely undermine European consumption and economic growth prospects. “The ECB is going to have no alternative but to look through this surge in inflation but the Fed is not going to delay so we will see more monetary divergence again,” said Mike Kelly, Global Head of Asset Allocation & Structured Equities at PineBridge Investments. Russia’s financial markets have been thrown into turmoil by sanctions imposed over its war with its neighbour. Since Russian troops entered Ukraine on February 24, the ruble is down close to 30 percent against the dollar. The Russian central bank gave up efforts to support the domestic currency because over half the country’s reserves have been frozen by central banks abroad. Instead, it imposed a 30pc commission on foreign currency purchases by individuals on exchanges in an effort to curb demand for dollars. The regulator has also ordered Russian exporters to convert 80pc of their forex revenues into rubles to support the local currency, but the measures have not kept the ruble from weakening.