The Russian ruble dropped today despite the surprise interest rate hike from Russia’s central bank as the country’s involvement in the conflict with Ukraine threatens to worse its international relations.
The Central Bank of the Russian Federation announced today:
The Bank of Russia Board of Directors decided to temporarily increase the Bank of Russia key rate to 7.00% effective from 11:00 Moscow time 3 March 2014. The decision is aimed at preventing the risks for inflation and financial stability arising from the recent increase in financial market volatility.
Refinancing rate stayed at 8.25 percent.
The ruble dropped still as Russia risks potential political and economic isolation after it has sent military troops to Crimea, which belongs to Ukraine.
USD/RUB advanced from 36.0488 to 36.4975 as of 9:56 GMT today, jumping as high as 36.8870.
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