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Russia further devalues rouble
Russia's rouble hit a historic low against the dollar on Thursday as the country sped on with a devaluation of the currency to adjust to lower oil prices and the worst economic outlook in a decade.
- Reuters
- Published: 23:51 January 15, 2009
Moscow: Russia's rouble hit a historic low against the dollar on Thursday as the country sped on with a devaluation of the currency to adjust to lower oil prices and the worst economic outlook in a decade.
A central bank official confirmed the rouble's trading band had been widened for the fourth time this year and the 16th time since it began a series of mini-devaluations aimed at gradually weakening the currency in November.
"The main focus is to adjust the rouble to the lower oil price, to balance the balance of payments and to preserve some reserves, which have already fallen significantly," said Yaroslav Lissovolik, chief strategist at Deutsche Bank.
"That is the main reason why they are speeding up the weakening of the rouble... It is possible they are hoping to conclude the devaluations this month," he added.
The rouble weakened to 36.81 (Dh4.18) versus the euro-dollar basket which the central bank uses to guide monetary policy
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