Moscow stocks dropped over six percent on Friday and Prime Minister Dmitry Medvedev acknowledged "serious risks" for Russia's budget as the energy-dependent economy reels from plunging oil prices and the ruble nears a historic low.
The dollar-denominated RTS index was down 6.25 percent in afternoon trading, while the ruble-denominated Micex lost 4.73 percent as the year 2016 got off to a catastrophic start with existing economic woes compounded by crude prices at a decade-long low.
Russia's battered currency on Friday was trading at 77.73 against the dollar, passing 77 to the dollar for the first time since December 2014, when it hit a historic low of 80. It also briefly broke the 85 ruble against the euro mark before recovering slightly.
The ruble has lost over five percent of its value since the start of 2016. Medvedev in a government meeting on the economy said the "dramatic movement of the oil market... is creating rather serious risks for carrying out the budget."
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