LONDON (Reuters) – The euro opened sharply lower after the weekend as the escalation of Western sanctions on Russia threatened further turmoil on world markets on Monday.

By 2055 GMT on Sunday, the single currency was down 1.2% at $1.11390.

Aside from blacklisting Russian businesses, individuals and banks, Western powers’ moves to cut some Russian banks from the SWIFT global payments system and freeze the Bank of Russia’s reserves are expected to deal a severe economic blow to the country’s economy, with likely spillover effects into Europe.

(Reporting by Sujata Rao; Editing by Alison Williams)