With Russia's emergency rate hike failing to arrest the ruble's meltdown, authorities may soon be forced to roll out capital controls, say analysts.
"Further depreciation pressure suggests that rate hikes and FX intervention may not be enough. At the current juncture, the odds of targeted capital controls are increasing significantly," Sébastien Barbé, head of EM research and strategy at Credit Agricole wrote in a note.
The battered currency has continued in its downward spiral despite the Central Bank of Russia's (CBR) astonishing 650 basis-point rate hike late Monday.
The ruble on Tuesday plunged more than 11 percent against the U.S. dollar – its steepest intraday fall since 1998 –before paring some losses on a bounce in oil prices. It last traded around the 71.7 level.