Arab Today, arab today russian ruble hits historic low against euro
Last Updated : GMT 13:20:23
Arab Today, arab today
Arab Today, arab today

Russian ruble hits historic low against euro

Arab Today, arab today

Arab Today, arab today Russian ruble hits historic low against euro

Moscow - AFP

The Russian ruble hit a record low against the euro on Friday and was at its weakest point against the dollar for nearly five years as it continued a month-long slide. Traders said the declines were likely to continue against the backdrop of strongly negative investor sentiment about emerging markets and eroding Central Bank support for Russia's belaguered currency. The Central Bank intends to introduce a fully floating exchange rate starting next year and shift its focus to the fight against persistently high inflation -- measures roundly applauded by economists but feared by Russian consumers. The euro broke through its record strong point of 47.25 against the troubled Russian currency in late Friday afternoon trading and stood at 47.31 rubles at 4:20 pm (1220 GMT). The ruble's previously low against the single European currency came in the worst months of Russia's financial crisis in early 2009. The dollar had also gained more than one percent against the Russian currency and was trading at 34.50 rubles on the Moscow Exchange. Since late December, the ruble has lost more than five percent of its value against a basket of euros and dollars which the Central Bank uses to set its policies. Traders said the latest bout of selling accelerated after Russian Economy Minister Alexei Ulyukayev was quoted as saying on Thursday that the ruble was more likely to weaken than strengthen in the coming weeks. Russian Finance Minister Anton Siluanov told Moscow Echo radio on Friday that he "sees no problem" with the current ruble exchange rate. "This is the policy of the Central Bank and the financial authorities -- to make the exchange rate more flexible," Siluanov said. The Central Bank eliminated some of its support measures for the ruble earlier this month and no longer spends $60 million (44 million euros) a day on "targeted" interventionist measures. It still spends between $200 million and $400 million a day on ruble purchases when the Russian currency slips outside the bounds of a predetermined trading band. But the Central Bank also reserves the right to shift that trading corridor to a higher exchange rate as pressure on the ruble mounts -- a step it has taken repeatedly this year. Traders brace for further declines The ruble's fate carries a much wider political dimension in Russia because of a painful post-Soviet devaluation in the early 1990s that wiped the saving of tens of millions and made many question the wisdom of market reforms. The ruble also lost a third of its value over a few days when Russia defaulted on its foreign debt in 1997. The global financial crisis of 2008-2009 also put the currency under strain. Russian President Vladimir Putin this week stressed that the government did not intend to pursue similar currency weakening policies and would only let the ruble more closely follow its natural course. But traders said the ruble was likely to remain under pressure at least until a flood of foreign tourists brought in a fresh supply of foreign currency when they descended on the Black Sea resort town of Sochi for the Winter Olympic Games next month. "In recent days, the ruble has not even been responding to positive news," the Nord Capital financial advisory said in the research note. "And here we have the negative news of steep US market declines and a weak US futures open," it noted. Chief AFK Sistema economist Yevgeny Nadorshin said the ruble's troubles were linked largely to the US Federal Reserve's decision to finally start tightening its monetary policy. "At the same time, the European Central Bank is promising to maintain an easy credit policy and part of the investors are moving into European bonds, which look much safer now than two years ago," said Nadorshin. "This leads to a stronger euro," Nadorshin told AFP.

arabstoday
arabstoday

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 russian ruble hits historic low against euro Arab Today, arab today russian ruble hits historic low against euro

 



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 russian ruble hits historic low against euro Arab Today, arab today russian ruble hits historic low against euro

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Saudi witnessing a remarkable growth

GMT 09:57 2017 Saturday ,23 September

Saudi witnessing a remarkable growth
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today US-made bomb used in fatal strike

GMT 10:16 2017 Saturday ,23 September

US-made bomb used in fatal strike
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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