Rus­sian ru­ble hits 75 to the euro as slide wors­ens

The Pak Banker - - BUSINESS -

MOSCOW: Rus­sia's bat­tered ru­ble fell Thurs­day on the back of weaker oil prices to more than 75 to the euro for the first time in over six months, deep­en­ing its re­cent de­cline.

The ru­ble also tum­bled against the dol­lar to near 67.44, its weak­est against the green­back since Fe­bru­ary. Rus­sia's cur­rency has fallen more than 20 per­cent against the dol­lar in the past two months, spark­ing fears of more in­sta­bil­ity af­ter a pe­riod of rel­a­tive re­cov­ery.

Rus­sia's econ­omy has slumped into re­ces­sion amid lower oil prices and Western sanc­tions over the Ukraine cri­sis. Oil prices slid to a new six and a half year low in Asia on Thurs­day, ap­proach­ing the key $40 a bar­rel level af­ter a sur­prise rise in US in­ven­to­ries added to con­cerns of a sup­ply glut. The ru­ble lost around half of its value in 2014 but re­cov­ered slightly as energy prices sta­bilised this year, al­low­ing of­fi­cials to claim the worst of the cri­sis had passed. But the re­cent de­cline, re­sult­ing from a re­newed fall in oil prices has high­lighted how volatile the sit­u­a­tion re­mains. The re­cent slump has seen the cen­tral bank curb moves to cut back in­ter­est rates as it seeks to jug­gle re­newed in­fla­tion fears against at­tempts to breathe life into the flag­ging econ­omy.

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