Ukraine in Arabic | Ruble fell the worst since 1998 crisis
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The ruble suffered its worst intraday fall since Russia’s 1998 financial crisis amid renewed fears over the impact of tumbling oil prices on the country’s economy.
At one point the roble hit a record low of 53.86 per dollar – a move of 6.5 per cent, a – though it later pared some of its losses.
The ruble has depreciated by nearly 60 % against the dollar since the start of this year.
The price of oil dropping to five-year lows in recent days has a major impact on the Russian economy as oil and natural gas exports are a main source of revenue for its federal budget.
Many analysts increasingly worry over the country's economic outlook as the Russian authorities express apparent reluctance to change tack over the crisis in Ukraine.
The price of oil, the backbone of the Russian economy, has dropped roughly 25 percent since the summer. Brent crude, an international benchmark, fell three percent on Friday and was down another one percent on Monday to $69.47 a barrel.
The US and the EU imposed economic sanctions on Russia over the summer, targeting the country’s energy, banking and defense sectors to punish, what they say, Moscow's support for rebels in eastern Ukraine.
The Kremlin, which in the past supported the exchange rate by buying up the rubles, said it considered the recent pressure on the currency to be speculative and was happy for it to remain freely floated in markets.
Meanwhile, some Russian politicians asked prosecutors to probe the central bank over its decision to let the ruble float freely.
