Moscow: Russia’s ruble today resumed its slide to new record lows against the dollar, tumbling over 3 per cent in early trading beyond 84 to the greenback on tumbling oil prices.
The ruble — which has already been battered over the past 18 months by low energy prices and Western sanctions over Ukraine — also weakened to over 92 against the euro. Russia’s recession-hit economy relies on oil and gas for over half of its budget revenues.
With oil hitting 12-year lows, the ruble yesterday slipped past its previous weakest point of 80.1 rubles to the dollar that it hit during a dramatic slump in December 2014.
The Russian currency has so far this year lost over 12 per cent of its value against the dollar, meaning that a recession that officials had been claiming was essentially over looks set to last longer. Russia’s Central Bank has so far shrugged off the latest ruble slummp but authorities will likely come under increasing pressure to react if the dive continues.
The government has already admitted that tumbling oil prices will have to see them slash government spending as they struggle to keep the deficit to under 3 per cent of gross domestic product (GDP).
