Russian rouble falls to 18-year low against the dollar
The Russian rouble has fallen to its lowest value against the dollar since its 1998 redenomination.
The rouble has lost around 57 per cent of its dollar value since mid-2014, when oil prices began to decline sharply. Swings in the rouble have closely tracked movements in oil prices over the last two years. Crude oil prices have fallen by around 70 per cent over the same period.
The rouble is currently buying $0.01247.
Economic sanctions imposed on Russia since Early-2014 in response to the annexation of Crimea in Ukraine have also hit the economy.
Russia's weak currency and economic sanctions plunged the country into recession while inflation in the country has shot up into double figures. The Russian central bank has been caught in a dilemma, tempted to raise rates to battle high inflation and a weak currency, but wanting also to cut them to stimulate weak growth.