Russia's currency briefly surpassed the Ukrainian Hryvnia as the world's worst performing currency year-to-date this week, but it isn't clear whether the ruble is undervalued.
The ruble weakened to 80 per U.S. dollar on Tuesday despite the Central Bank of Russia's effort to shore up the embattled currency with a 650 basis-point rate hike to 17 percent early that morning, briefly making it the world's worst-performing currency.
Declining oil prices coupled with a series of Western sanctions on Russia over its activities in Ukraine have dogged the currency. The ruble is strongly correlated with the price of oil, Russia's most important export, which accounted for 14 percent of gross domestic product in 2012, according to World Bank data. Brent crude oil has fallen from above $115 per barrel in mid-June to around $59.42 a barrel in Asian trade Friday.