While attention has been focused on the European Central Bank today, Russia’s currency has been quietly continuing its collapse crossing a new record low of 46 roubles to the dollar.
The rouble’s collapse has continued into its fifth month after the Russian central bank effectively threw in the towel by announcing the “abandonment of unlimited foreign exchange interventions” on Wednesday. Its move comes after the central bank spent an estimated $US18 billion buying up roubles in October in an effort to halt the currencies slide against the dollar and the euro.
According to Credit Suisse, at the start of the year market consensus was for an average level of 34 roubles to the dollar through 2014, within a range of 32.25 to 36.7. That prediction has now been completely blown out of the water by the events of the past six months.
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