The ruble fell to a 6-month low against the dollar.
On Monday, the Russian currency dropped below 65 per dollar for the first time since February.
The ruble is currently trading around 65.5, and got down as low as 65.7 earlier in the day, according to Bloomberg data.
To date, the ruble has tumbled approximately 25% since its peak in mid-May.
The ruble’s drop follows the recent oil price drop: Currently, WTI is trading near 6-year lows at $US41.84 per dollar. Meanwhile, Brent is trading around $US48.94, slightly above its 2015 low of $US45.19.
Additionally, there have been reports of renewed in fighting in eastern Ukraine near the port city of Mariupol and the rebel-held town Gorlivka.
The ruble’s continued drop keeps the Central Bank of Russia in an inconvenient position. Analysts believe that the currency’s tumble could inspire the bank to interrupt its rate-cutting agenda.
Although the bank slashed rates for the fifth time this year in early August, the cut was less than expected amid a weaker ruble. Furthermore, the bank took out the phrase “ready to continue cutting,” signalling a potential shift in the central bank’s strategy.
“Some people could see the risk of the central bank being forced to raise rates instead of cutting them, although it’s hard to make a U-turn here,” Yury Tulinov, the head of research at Rosbank PJSC in Moscow, told Bloomberg News. “I hope they at least refrain from further sizable rate cuts for now, or the ruble may suffer even more.”