Russian central bank raises key interest rate from 10.5% to 17% amid rouble decline Tuesday Dec 16,2014

 

The bank said the move was to try to ease the rouble's recent descent in value.

Russia was facing a serious crisis last night after the Russian rouble crashed through the floor, it hit 80 to the dollar, 100 to the euro, and 113 to the Pound at one point and lost 20 per cent in a matter of hours

The Russian rouble has dropped to a new low against the US dollar, as falling oil prices and Western sanctions continue to weigh on the country's economy.

It snapped back to 60 roubles per dollar from a low of 67 earlier.

The 60 mark is considered a "psychological barrier" for Russia's national currency

Since the start of the year 2014, the rouble has lost more than 45% of its value against the dollar

Rouble in sharpest fall since 1998
On Monday Dec 15,2014 the rouble suffered its sharpest fall in more than 15 years, losing around 10% of its value against the dollar. Moscow's RTS share index plummeted 10%

On Monday, the rouble weakened beyond 60 roubles per dollar for the first time, hitting a record low of 64.44 to the dollar on the Moscow Exchange, almost 10 percent weaker than the previous close, and 78.87 versus the euro.

In US trading, the rouble sank further to 65.90 to the dollar after it broke through the upper limits of a price boundary set by the Moscow Exchange, meaning the exchange did not accept offers above 64.4459 in the evening session.

The dollar-denominated RTS share index closed down 10 percent at a five-year low and Russian companies' dollar bonds sold off.