Russian Currency Rouble in free-fall despite shock 17% Interest Rate Rise Tuesday Dec 16,2014

Russia's rouble went into free-fall in Tuesday Dec 16,2014 trading, falling repeatedly to hit record lows, despite the central bank's dramatic decision to raise interest rates from 10.5% to 17%.

The rate rise was meant to strengthen the currency.The chairwoman of the Russian central bank, Elvira Nabiullina, said the latest rate rise should curb inflation and encourage Russians to put more roubles into interest rate-bearing accounts

It helped it to 58 to the US$ early on Tuesday, but the dollar at one stage bought as many as 79 roubles.

The rouble has lost more than half its value against the dollar this year, hit by cheaper oil and Western sanctions.