Russian Ruble Drops to Record Lows on Sanction Fears

The Russian ruble dropped to all-time lows today due to concerns about potential impact of sanctions from the United States and the European Union on Russia’s economy.
The Bank of Russia left its interest rates unchanged at its meeting last week even though inflation spiked as the currency crashed. The central bank said that monetary tightening is unlikely in the future even though the sanctions will have “a prolonged impact” on the economy. Still, there is a chance that the bank will intervene to stop the ruble’s free-fall.
USD/RUB rose from 38.3582 to 38.6003 as of 15:53 GMT today, reaching the record high of 38.8923 intraday.

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