The Russian ruble slumped to its lowest level against the US dollar in more than two-and-a-half years on Wednesday as it reeled from tensions over the conflict in Ukraine.
Fears of a major escalation in the almost three-year offensive have risen in recent weeks, with fresh Western sanctions also putting a strain on the Russian currency.
At 1120 GMT the ruble slid past 110 against the dollar for the first time since 16 March 2022, Russia’s state RIA Novosti agency reported, citing market data.
This is its lowest level in more than 32 months.
The currency, seen by many Russians as a bellwether for the country’s economic health, was trading at around 75-80 to the dollar before the start of the conflict.
Russia’s finance minister on Tuesday sought to brush off concerns over the currency’s sharp drop, saying it would be “very conducive to exports”.
A weaker currency means Moscow’s goods appear cheaper on the world market.
But it also means Russians have to pay more for imports, threatening to push up already high inflation at home.
The central bank has raised rates to 21 percent, their highest in more than two decades, to try to bring price rises under control.
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