16 Dec 2014
USD/RUB retreats after hitting all-time high at 80.00
FXStreet (Córdoba) - USD/RUB has steadied above 72.00 after hitting a fresh all time high above 80.00 during the European session despite the CBR announced an aggressive rate hike in an attempt to stabilize the falling ruble.
The Russian ruble had depreciated more than 50% during 2014 to yesterday's close which prompted the central bank to announce an emergency hike of the interest rate from 10.5% to 17% aimed at halting the slump of the currency. However, following a short-lived recovery, the ruble resumed the tailspin as investors feared capital controls may be the next step for Russia.
The fall in oil prices and sanctions from Western countries are deteriorating Russian economy and adding pressure on the nation’s currency.
USD/RUB rose more than 20% to a record high of 80.00, while EUR/RUB hit 100.00 before retreating somewhat. At time of writing, the dollar-ruble is trading around 72.25, recording a 10% rise on the day. USD/RUB has risen 120% year-to-date from 32.89.
The Russian ruble had depreciated more than 50% during 2014 to yesterday's close which prompted the central bank to announce an emergency hike of the interest rate from 10.5% to 17% aimed at halting the slump of the currency. However, following a short-lived recovery, the ruble resumed the tailspin as investors feared capital controls may be the next step for Russia.
The fall in oil prices and sanctions from Western countries are deteriorating Russian economy and adding pressure on the nation’s currency.
USD/RUB rose more than 20% to a record high of 80.00, while EUR/RUB hit 100.00 before retreating somewhat. At time of writing, the dollar-ruble is trading around 72.25, recording a 10% rise on the day. USD/RUB has risen 120% year-to-date from 32.89.