Ruble dives, stocks sink as West tightens Russia sanctions

The ruble has plunged against the U.S. dollar after Western nations moved to tighten sanctions against Russia, blocking some of its banks from the SWIFT global payments system

The ruble plunged to a record low of less than 1 U.S. cent on Monday after Western nations moved to tighten sanctions against Russia, blocking some of its banks from the SWIFT global payments system.

Shares were mixed in Asia but U.S. and European futures were sharply lower as President Vladimir Putin escalated tensions by ordering that Russian nuclear forces be put on high alert.

Russian’s invasion of Ukraine has caused markets to swing wildly, given the potential impact on inflation, energy supplies and other economic repercussions.

Putin ordered Russian nuclear weapons prepared for increased readiness to launch on Sunday, ratcheting up tensions with Europe and the United States in a move that revived dormant fears from the Cold War era.

Japan over the weekend joined moves by the U.S. and other Western nations to impose sanctions against Russia, including restrictions on access for some Russian banks to the SWIFT system.

Central bank restrictions target access to the more than $600 billion in reserves that the Kremlin has at its disposal, hindering Russia’s ability to support the ruble as it plunges in value.