What, how and why of the Russian rouble fall December 2014?

  • What: 9% fall of Russian currency (Rouble) against US$ on 01 December 2014, biggest one day decline since 1998.
  • How: Foreigners sell Rouble holdings + Rouble denominated assets. Domestics seek safe haven in US$ by selling Roubles.
  • Why: Recent falls in oil prices escalate fears re health of Russian economy, already fragile by West's sanctions imposed in retaliation for Crimea annexation & support for separatists in E-Ukraine.
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