Naharnet

Russian Ruble Plumbs New Depth

The beleaguered ruble hit new record lows on Monday after oil prices sank further amid spreading worries about Russia's economy.

The Russian currency fell for a third day in a row, slumping to over 52 rubles against the dollar and 65 rubles against the euro in afternoon trading on the Moscow Exchange.

The ruble has now depreciated by some 40 percent this year, due to falling oil prices and Western sanctions imposed against Russia's support for a separatist uprising in eastern Ukraine.

Brent crude was down to $68.39 Monday morning, following a decision by OPEC last week to leave its output target unchanged.

"Brent’s moving below $70 (-2.7% overnight) has triggered the rout, as consensus seems to hold that the oil price drop will persist over an extended period," Alfa Bank said in a note.

The central bank had been propping up the falling ruble through daily interventions but said in November it would limit its support to let the ruble float freely.

The bank however reserves the right to intervene to curb risks to financial stability.

According to a new study by the polling company Public Opinion, 50 percent of Russians said the falling ruble was affecting their livelihoods.

Source: Agence France Presse


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