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Ruble’s Plunge Has Traders Weighing Bank of Russia’s Options

  • Russian currency has already fallen over 20% so far this year
  • Central bank seen bucking trend of rate cuts to bolster ruble
Updated on

Russia’s ruble tumbled the most in emerging markets on Wednesday, erasing more than a fifth of its value so far this year after Brent crude sank below $27 per barrel.

Fears of a worldwide recession and a flight to the dollar are squeezing all risky assets, but the markets of the world’s biggest energy exporter are being hit particularly hard after President Vladimir Putin plunged into an oil-price war with Saudi Arabia. Russian local currency bonds and the ruble were one of the biggest overweight calls in the asset class last year. Now the ruble’s 22% plunge year-to-date is the worst performance globally.