Russia's rouble went into free-fall in Tuesday trading, falling repeatedly to hit record lows, despite the central bank's dramatic decision to raise interest rates from 10.5% to 17%.
The rouble's slide this week was prompted by fears that the US was considering a fresh set of sanctions against the country for its support for separatists in Ukraine.
Russia’s ruble was tanking faster than journalists could type, hitting levels against the dollar that were unimaginable even a week ago.Russia’s plummeting ruble is swiftly upturning the nation’s broader economy and threatening instability in a major world economy.
When Russia defaulted in 1998, it helped set off a global financial crisis that caught fire in many emerging markets. So far, Russia’s problems are mainly confined to home. But that could change, and neighbors that are closely connected to Russia such as Belarus and Kazakhstan are already worrying.
As a result, Russian consumers flocked to the stores Wednesday, frantically buying a range of big-ticket items to pre-empt the price rises kicked off by the staggering fall in the value of the ruble in recent days.
Technology giant Apple says it cannot sell products online in Russia because the rouble's value is too volatile for it to set prices.