An attempt by Russia’s central bank to halt a dramatic slide in the value of the rouble appears to have failed.

The currency strengthened – by more than 9% against the dollar at one stage – in the wake of the intervention which saw the core interest rate raised overnight from 10.5% to 17%.

But those gains were later erased as the rouble fell to a new low of 80 to the dollar.

The Bank of Russia’s surprise action was a response to the rouble’s value sinking by almost 50% over the course of the year – hit by Western sanctions imposed over the Ukraine conflict and plummeting oil prices.

It was also intended to settle nerves back home as fears grow that the extent of Russia’s economic problems – largely unreported by state media – could spark panic among consumers as price rises become unmanageable… see more

source: skynews