Emergency measures by the Russian central bank Monday night, aimed at limiting the ruble's devaluation, looked to have fallen short within hours of their announcement, with the ruble tumbling against the dollar as traders continued to dump the Russian currency Tuesday.
The Central Bank of Russia (CBR) unexpectedly hiked rates by 650 basis points in a midnight session on Monday evening. It raised its base rate to 17 percent from 10.5 percent after the ruble suffered its worst trading day for 15 years. The currency rebounded at the open on Tuesday, appreciating 9 percent against the dollar. However, the ruble soon trimmed its gains and was down for the session against the greenback by late afternoon London time.
The ruble, already one of the worst-performing currencies of 2014, reached a high of 65.9060 against the U.S. dollar before the late night emergency move, but hit 71.84 by 4pm London time on Tuesday after reaching a low of around 59.7839 at the session open. It also hit a new record low against the euro on Tuesday morning.
Later Tuesday, CBR First Deputy Governor Sergei Shvetsov told news agencies Tuesday that the situation in the foreign exchange and equity markets was "critical" and that the bank will implement more measures to stabilize domestic markets.