Market holidays and trading hours provided by Copp Clark Limited. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. The ruble strengthened to 98 to the dollar. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. Russia’s central bank hiked its main interest rate by 3.5 percentage points to 12 Tuesday after the ruble hit a 17-month low the previous day. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account Russia’s currency collapsed in the immediate aftermath of Russia’s full-scale invasion of its neighbor in February 2022, falling as low as 136 to the dollar in March 2022. Those factors include a slump in energy prices and export revenues, and difficulty attracting foreign capital because of sanctions, he added. The ruble’s depreciation is a consequence of many factors moving against Russia all at once,” Liam Peach, senior emerging markets economist at Capital Economics, wrote in a note. “Today’s rate hike will only temporarily slow the bleeding. Speaking to CNN’s Erin Burnett late Monday, US Treasury Secretary Janet Yellen said the ruble’s decline reflected the fact that sanctions, as well as the war, were “causing a drain on the Russian economy.”Īnalysts were skeptical Tuesday’s emergency action by the Russian central bank would provide a lasting solution to the currency’s problems. So far this year, the ruble has shed 35% of its value, as Moscow’s war in Ukraine takes a heavy toll - though President Vladimir Putin has insisted that Western sanctions are having a limited effect. Annual consumer price inflation in Russia stood at 4.3% in July. The central bank said the move was intended to steer inflation down to 4% next year. “The pass-through of the ruble’s depreciation to prices is gaining momentum and inflation expectations are on the rise,” it added. “Steady growth in domestic demand surpassing the capacity to expand output amplifies the underlying inflationary pressure and has impact on the ruble’s exchange rate dynamics,” the central bank said in a statement released by its press service. The Bank of Russia said its decision - made at a special meeting announced Monday - was “aimed at limiting price stability risks.” The ruble strengthened to 98 to the dollar following the announcement, after weakening to 102 Monday. President Vladimir Putin also has put "massive capital controls" in place to stabilize the ruble, bolstering the currency, Foley noted.Russia’s central bank hiked its main interest rate by 3.5 percentage points to 12% Tuesday after the ruble hit a 17-month low the previous day. and allies target Putin's daughters and Russian banks Western sanctions are pummeling Russia's economy.Even with the broad-based sanctions, Russia continues to export oil, gas and coal, with Bloomberg Economics estimating that the nation's energy exports will surge by one-third this year to $321 billion. Reasons for that rebound include support from the Russian government, as well as ongoing purchases of Russian energy from the European Union and other nations, Jane Foley, head of FX Strategy for Rabobank London, told CBS News. The recent gains mean the currency is now back to its level before sanctions were imposed by the U.S. dollar to less than 1 cent - prompted President Biden last month to mock the currency as "rubble."īut the ruble has bounced back, almost doubling its value from its low point on March 7. That plunge - which in early March lowered the ruble's value against the U.S. first issued sanctions in response to the nation's war on Ukraine. The value of the Russian ruble tumbled 30% after the U.S., European Union and U.K. What's behind the rebound of Russia's ruble? 05:17
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