MOSCOW (AA) – Despite its promises, the Russian government has been unable to support the value of the ruble.
After losing 6 percent on the dollar on Monday, the currency on Tuesday fell steadily to a value of 63.45 to the dollar and 75.52 to the euro on Tuesday. It had been at about 56 to the dollar at the end of the year.
Another decrease in oil prices may explain the ruble’s weak start in 2015. The value of Brent crude, the benchmark price for international oil spot sales, dropped as low as $50.04 per barrel on Monday.
Russian President Vladimir Putin vowed in a speech on Dec. 18 that the ruble would recover.
The most serious drop in value occurred on Dec. 16, when the Russian currency saw the loss of 20 percent of its value in one day. Even after the ruble stabilized, foreign exporters began to revise their prices to adjust to the ruble’s much lower value.
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