Ukraine's currency in freefall after central bank rate hike

The Ukranian hryvnia is down over 40% hitting new record lows against the dollar after a central bank rate hike failed to calm nerves.

Ukraine's central bank increased its key rate to 19.5% from 14% and scrapped foreign currency auctions on Thursday, in a move that was intended to move the country's currency closer to a free-float. However, it sent the hryvnia tumbling.

Central bank governor Valeriia Gontareva stressed that the decision not to intervene in currency markets at this time does not constitute a free-float - though, she added, people will have to "get used to market volatility".