The Rouble Falls Again Against the Dollar

16 Dec , 2014

The Russian rouble has dropped even further against the US dollar to a new low. Falling oil prices and Western sanctions continue to oppress the country.

Despite continued stimulus from Russia’s central bank the rouble has lost more than 45% of its value against the dollar since the start of the year. As of Monday afternoon, it takes more than 60 roubles to buy a single dollar.

Russia's central bank has tried unsuccessfully to stabilise the currency, buying roubles in the markets and raising its main lending rate to 10.5% last week. Those efforts have so far been in vain as the fall in the price of crude oil - one of the country's main exports – has been overwhelming.

There are also major concerns that international sanctions over Ukraine might be stepped up.

Russian authorities appear unable to bring down inflation either - prices are expected to be 10% higher by the end of the year.

Russia's central bank has warned that the country's gross domestic product could contract by approximately 4.5% next year, if oil remains at $60 a barrel.

Market watch, Stock Market, World Economy