Russia hikes key rate to 17% after record ruble tumble

A Russian ruble coin is pictured in front of the Kremlin in central Moscow, November 6, 2014The Russian central bank early Tuesday announced a dramatic hike of its key interest rate from 10.5 to 17 percent after the ruble plunged to a fresh record low. The ruble on Monday suffered a mini-crash, falling by 9.5 percent in a single day despite repeated interventions by the central bank, with the latest apparently taking effect on Monday afternoon. The ruble broke through the level of 64 to the dollar and 78 to the euro for the first time even though the Bank of Russia has already spent about $6 billion (4.8 billion euros) so far this month to slow the currency’s slide. Russian news agencies said the ruble briefly jumped from 61 back to 60 on the dollar at around 1300 GMT, possibly due to the latest central bank intervention, but it did not stop a further slump.

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