Weak ruble causes concerns

The rouble weakness almost reminds the situation of December last year when the currency was at risk of collapse. 

The continued fall of the oil price, which is hitting the Russian economy hard, is likely to be behind yesterday's move. For that reason bad news from China are a strong burden for the rouble. A continued currency weakness is the last thing the Russian central banks needs at present. It has been fighting high levels of inflation (caused by the rouble depreciation at the end of last year) and as a result raised interest rates. As the situation seemed to improve at the beginning of the year it lowered interest rates notably. 

"Further cuts are expected from the Central Bank of the Russian Federation. Should the rouble remain under pressure thus fuelling inflation again these plans would be at risk", according to Commerzbank.