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Ruble slides again despite Central Bank rate hike

A massive interest rate hike by Russia's Central Bank on Tuesday failed to stem the selling pressure on the ruble, which slid another 20 percent to new historic lows.

 

The surprise Central Bank decision to raise the rate to 17 percent from 10.5 percent came in the middle of the night on Tuesday and represented a desperate attempt to prop up the troubled currency. The ruble has fallen sharply in recent weeks as a result of sliding oil prices as well as the pressure from Western sanctions over Russia's involvement in Ukraine.

 

In the first hours after the increase, the ruble staged a rebound, recovering almost all of its Monday losses. But the optimism soon dissipated and the ruble was down another 20 percent to 77 to the dollar by 3.30 PM in Moscow.

 


פרסום ראשון: 12.16.14, 15:05