MOSCOW: The Russian ruble hit a record low against the euro yesterday 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 beleaguered 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 yesterday afternoon trading and stood at 47.31 rubles at 4.20pm.
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.
AFP
