There’s bad news for those who have been following the ruble: There has been a dramatic drop in the value of the Russian currency, the Ruble, which has fallen by 10% beside the dollar which makes it the single worst currency in the world this year.
This dubious title comes as the currency has dropped a total of 43% against the dollar since last year. This is just shocking for Keith Mann to see. This even brings it below the Ukrainian currency which was weakened because of the recent altercations in the east.
The Ruble has performed so badly due to the fall in oil prices which has reduced by nearly half. A currency strategist called Tom Levinson said that “The ruble today became detached from oil fundamentals. The problem is that there is no obvious ‘end game; for investors to grab hold of when it comes to a possible turnaround. Markets are pushing at an open door.”
Some analysts have criticized the Central bank by saying that “The policy response from the Russian authorities has been close to non-existent. This is a really high risk strategy from the Central Bank.”
This comes after warnings that the Central Bank may take steps to harm those who have betted on the ruble’s decline in order to make more money.
However, this seems to be a pipe dream too as Levinson said that the “ruble bears will not be subject to any sudden bounce back.”