Arab Today, arab today ruble sinks to new lows despite rate hike
Last Updated : GMT 09:19:05
Arab Today, arab today
Arab Today, arab today

Ruble sinks to new lows despite rate hike

Arab Today, arab today

Arab Today, arab today Ruble sinks to new lows despite rate hike

Ruble
Moscow - AFP

The ruble sank Friday to fresh record lows as oil prices plunged further, prompting apparent intervention from Russia's central bank.
The Russian currency weakened to 72.14 against the euro and 57.98 against the dollar, before trading in the greenback suddenly jumped -- in what appeared to be action by the central bank to halt the ruble's haemorrhage.
"The ruble's fall continued Friday morning.... After this followed a new intervention from central bank, it pushed the ruble rate down," said Alexei Mikheyev, an analyst at VTB-24 bank.
The effect was shortlived, however.
"About 80 percent of the fall in the dollar-ruble rate based on the intervention was won back in the next half hour," Mikheyev said, criticising what he called a "toothless" strategy from the central bank.
Russia has spent more than $5 billion so far this month alone on market interventions to shore up the ruble, and concern is growing at the rate of depletion of its foreign currency reserves, which are down a fifth since the summer of 2013.
The central bank's actions to shore up the ruble have so far proved futile, with its latest one percentage point interest rate hike on Thursday shrugged off by the market.
Since the beginning of the year, the ruble has lost 36 percent of its value against the euro and 42 percent against the dollar.
At the heart of the problem is plunging oil prices, which, coupled with Western sanctions over the Ukraine crisis, have hurt the Russian economy.
Half of Russia's revenues come from oil and gas. Replenishing its coffers is therefore proving to be more difficult than expected.
Analysts say the market is shunning the ruble on Friday because the central bank had failed to take more decisive action to help the currency.
"The market is mainly being driven by the disappointment of what is viewed as overly conservative action on the part of the central bank of Russia in hiking the key rate only 100 basis points," Alfa Bank said in a research note Friday.
Other analysts speculated that more drastic action may yet be applied.
"The central bank responded by raising interest rates, but this failed to stem the ruble’s fall, leading to speculation that capital controls may be introduced," Capital Economics said.
By raising interest rates, the bank was hoping to make the currency more attractive to savers and help fight inflation, which is projected to reach 10 percent by the end of the year.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ruble sinks to new lows despite rate hike Arab Today, arab today ruble sinks to new lows despite rate hike

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 02:19 2017 Saturday ,25 February

SIEL expo, March 1-4

GMT 12:30 2017 Friday ,24 February

Norway's Telenor to leave Indian telecom market

GMT 10:17 2017 Friday ,24 February

Dow stands out as global stocks tread water

GMT 16:11 2017 Thursday ,23 February

Bahrain Bourse daily trading report

GMT 16:08 2017 Thursday ,23 February

BHB holds VAT seminar
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday