Russia interest rate hike fails to halt ruble crash

Even after rebounding late in Moscow, the ruble was still down 14% this week and 27% this month

The ruble plummeted into a freefall, losing as much as 19% as panic swept across Russian financial markets after a surprise interest-rate increase failed to stem the run on the currency.

The ruble sank beyond 80 per dollar, a record low, before rebounding after Alexei Ulyukayev, the economy minister, denied speculation that the government would turn to foreign-exchange restrictions to stop Russians from converting money into dollars. Bonds and stocks also tumbled, with the RTS equity gauge dropping the most since 2008.