Ruble Advances as Cash Crunch From Higher Rates Supports Demand
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The cash crunch that Russian central bank Governor Elvira Nabiullina engineered to bolster the ruble is starting to work.
The currency has rallied about 35 percent versus the dollar since plunging to a record low on Dec. 16 in the worst day of Russia’s nine-month financial crisis. Nabiullina jacked up borrowing costs by the most in 16 years that day to 17 percent, sacrificing economic growth to prevent a freefall in the ruble.