Loading…
Friday, November 28, 2014
Current Weather
Loading Current Weather....
HomeNewsWorld
Published: Monday, 3/3/2014

Russian markets, ruble plummet on Ukraine fears

ASSOCIATED PRESS
People walk past a currency exchange office in downtown Moscow, Russia, today. People walk past a currency exchange office in downtown Moscow, Russia, today.
ASSOCIATED PRESS Enlarge

MOSCOW  — Russia’s stock market dropped about 10 percent today and its currency fell to its lowest point ever against the dollar and the euro as worries grew over the potential economic repercussions of the crisis in neighboring Ukraine.

Russia intervened over the weekend to take control of Crimea, a Ukrainian peninsula with strategic importance, and the new government in Kiev fears a wider invasion. The West responded by questioning Russia’s membership in the Group of Eight leading industrialized democracies, and the U.S. threatened possible asset freezes and trade penalties.

The Moscow Exchange fell about 10 percent in the first hour of trading today, although it later recovered slightly.

The ruble, already down nearly 10 percent this year, fell below 50 to the euro for the first time. It traded at 36.89 rubles to the dollar, also a record, before stabilizing around 36.49.

The Bank of Russia decided to temporarily increase the Bank of Russia key rate by 1.5 percentage points to 7 percent in an attempt to keep the currency’s fall from driving up inflation. The central bank will hold its next meeting on March 14.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.

Related stories