Russian ruble plummets to new record low of 85 to dollar

PanARMENIAN.Net - Russia's ruble on Thursday, January 21 continued to plummet to new record lows against the dollar, tumbling by over 4 percent beyond 85 to the greenback on falling oil prices, AFP reports.

The ruble - which has already been battered over the past 18 months by low energy prices and Western sanctions over Ukraine - also weakened to over 93 against the euro.

Russia's recession-hit economy relies on oil and gas for over half of its budget revenues and the authorities are coming under increasing pressure to act to stave off further damage to the currency.

The Kremlin insisted that the ruble's plunge was "not a collapse", insisting the authorities would be able to stop the rot, AFP says.

"The exchange rate is really changing, the rate is volatile, but it is far from being a collapse," spokesman Dmitry Peskov was quoted as saying by Russian agency Interfax.

"There is no basis to suggest the central bank does not have plans drawn up to avoid a collapse."

With oil hitting 12-year lows, the ruble on Wednesday slipped past its previous weakest point of 80.1 rubles to the dollar that it crashed to during a dramatic slump in December 2014.

The Russian currency has so far this year lost over 12 percent of its value against the dollar, meaning that a recession officials had been claiming was essentially over looks set to last longer.