The Russian ruble tumbled against the dollar and the euro for the second day in a row on Tuesday, punished as oil prices plunged further.
The ruble was worth 64.68 against the dollar and 76.43 against the euro at around 0900 GMT, down from 63.17 and 74.68 on Monday evening.
Stocks in the oil exporting nation were also hit, with the RTS index down 2.64 percent at around 0900 GMT.
Russia's budget depends heavily on revenues from oil and gas, and the ruble's fall on Tuesday came as the price of a barrel of Brent fell to around $46, approaching 6-year lows.
"The performance of crude oil remains the key focus for ruble traders," VTB Capital analysts said in a research note.
The ruble's plunge has also been fuelled by the fallout from the crisis in Ukraine that has seen the West slap the toughest sanctions on Moscow since the end of the Cold War.
The sharp depreciation of the national currency has propelled official inflation to over 11 percent.
The falling ruble sparked panic among Russians in December, with people rushing to convert their savings into dollars or euros, peaking on December 15 and 16 when the ruble lost around a quarter of its value in two days.
The ruble then stabilised, but still ended the year down 41 percent against the dollar, and has remained weak in January as oil prices have continued to fall.
In late December, Russian Finance Minister Anton Siluanov predicted that if a barrel of oil was worth $60 the Russian economy could contract by 4 percent in 2015 after having edged out 0.6 percent growth this year.
At that price, which is above the $50 average price per barrel in 2015 the US investment bank Goldman Sachs now forecasts, Russia would record a budget deficit of 3 percent after balancing the budget for many years.
Russia's central bank said Monday that it had spent $76 billion to prop up the ruble in 2014, leaving currency reserves of less than $400 billion for the first time in five years.
GMT 18:55 2018 Friday ,14 December
Libya’s National Oil against paying ‘ransom’ to reopen El Sharara fieldGMT 22:21 2018 Thursday ,13 December
Turkey starts building land part of Turkish Stream pipelineGMT 13:35 2018 Sunday ,09 December
OPEC+ deal to ensure stability of oil price, that is positive for RussiaGMT 14:30 2018 Friday ,07 December
Major oil producers haggle over production cutGMT 13:29 2018 Thursday ,06 December
Major oil exporters mull supply cut amid internal rifts, US demandsGMT 09:30 2018 Monday ,03 December
Qatar says it is withdrawing from OPEC on January 1GMT 21:01 2018 Sunday ,25 November
Oil prices plummet amid U.S. drilling rigs downGMT 17:32 2018 Friday ,16 November
OPEC Basket Price Stood, at over $65.2, on ThursdayMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor