A US official says there have been $60 billion in capital outflows from Russia so far this year due to Ukraine, which exceeds the total from 2013.
To me, it’s obvious that the first stop for that money is into euros. The Russians have some friends in periphery banks and although some of them lost money in Cyprus banks, I’m sure there are others.
The euro is up today and until the Ukraine story falls to the back pages again or the ECB takes action, the stubborn bid will remain.
