Russian crisis turns systemic as rouble crashes 13pc
Russia is in the grip of full-blown currency crisis after a panic scramble for dollars sent the rouble crashing 13pc, with contagion spreading to Brazil, Indonesia and across the emerging market nexus.
The rouble smashed through resistance to an all-time low of 65.5 to the dollar in a crescendo of selling on Monday, as oil prices continued to slide and markets braced for a likely default in Ukraine. The Russian currency has lost half its value since President Vladimir Putin first sent forces into Ukraine, setting off a chain of events that the Kremlin can no longer control.
“This is being driven by pure fear. We have crossed a line and the crisis is now self-feeding,” said Chris Weafer, from Macro Advisory in Moscow. “The central bank must intervene immediately with a great deal of money to overwhelm the sense of panic.”......