Russia’s central bank has raised its key interest rate 3.5 percentage points to 12 per cent at an extraordinary meeting, after the rouble fell below Rbs100 to the dollar.
The currency strengthened ahead of and immediately after the large rate rise on Tuesday, which exceeded market expectations, before paring some gains to trade at 98 roubles to the dollar, having weakened past 102 on Monday.
The collapse in the rouble highlights jitters about Russia’s economic prospects almost a year and a half into President Vladimir Putin’s full-scale invasion of Ukraine.
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