scorecard
  1. Home
  2. stock market
  3. The Russian Ruble Is Getting Crushed

The Russian Ruble Is Getting Crushed

Tomas Hirst,Tomas Hirst   

The Russian Ruble Is Getting Crushed
Stock Market1 min read

The Russian ruble has fallen further against the dollar and the euro hitting record new lows against the currencies.

RUBUSE

Bloomberg

Ruble vs the dollar

RUBEUR

Bloomberg

Ruble vs the euro.

Russia's currency has been put under pressure by a combination of falling oil prices and fears over a possible sovereign debt downgrade by Standard & Poor's Friday.

The ratings agency currently has a BBB- on Russia, only one grade above junk. A further downgrade would push it into junk territory, likely increasing the country's borrowing costs at a time when it is already struggling to meet budget targets due to plunging commodity revenues. If the oil price continues to slide analysts see the country falling into a recession.

The Russian central bank has spent over $15 billion in October to prop up the currency, burning through Russia's foreign exchange reserves, but so far has been unable to halt the slide.

READ MORE ARTICLES ON


Advertisement

Advertisement