Russian Ruble Spikes Up Against U.S. Dollar After Bank Of Russia Rate Hike
December 16 2014 - 2:12AM
RTTF2
The Russian Ruble strengthened against the U.S. dollar on
Tuesday, after the Bank of Russia's surprise rate hike to limit the
slide in the domestic currency and risks to inflation.
In an emergency meeting early in the day, Russia's central bank
lifted its key rate to 17 percent from 10.5 percent, effective
today. This was the sixth rate hike this year. The upward
adjustment came after 100 basis point-hike last week.
The central bank also raised its repo rate to 18 percent from
11.5 percent. Further, it increased the foreign currency offering
via repo auctions to $5 billion from $1.5 billion and decided to
conduct 12-month forex repo auctions on weekly basis.
The ruble snaped back to 57.86 per dollar, up by 12.8 percent
from yesterday's record low of 66.33. The next possible upside
target for the ruble is seen around the 57.5 zone.
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