The spectre of a possible full-scale war between Russia and Ukraine cast a giant shadow over the rouble on Thursday (August 29), and the following day’s trading saw no let-up in pressure on the Russian currency, which hit a record low against the dollar.
Its losses for the week are now over two and a half percent, although it has lost less than half of one percent against the euro.
Russia’s economy was slowing even before the crisis, and its food import ban means consumer prices are rising. Increased inflation will also make it hard for the central bank to reverse its recent interest rate rises. Stocks are also on the slide.