Ruble Is Put To The Test |

Ruble Is Put To The Test

The Russian central bank is bracing itself for a test of its resolve to defend the ruble. On Monday, the currency edged closer to the ceiling at which the Kremlin has pledged to halt the slide of the currency, and which is likely to be tested this week.

In early afternoon trading in Moscow on Monday, the ruble was at 40.40 to a euro-dollar basket against which it is measured, having gone to 40.79 earlier in the day. Two weeks ago the Russian central bank, the Bank of Russia, raised the ceiling for defending the currency to 41.00, from 39.20, and said that this would be the end of the gradual, managed depreciation of the currency that had been taking place since November. (See “Ruble Hits The Roof.”)

http://www.forbes.com/2009/02/02/ruble-barrier-defence-markets-currency-0202_russia.html

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