The Russian rouble dropped to a three-year low against the dollar on Friday, as a senior central bank official dismissed rumours of a sharp New Year's Eve devaluation as "complete nonsense." His comments came after the central bank allowed the currency to weaken slightly in the 11th such devaluation in the past two months.
The central bank's official exchange rate fell Friday to 29.0058 rubles per dollar, according to its website. The last time the ruble's value flirted with the level of 29 rubles to the dollar was in December 2005. The Russian currency has lost nearly 20 percent of its value against the dollar since August amid the global financial crisis and plunging prices for oil, the country's main export.
In a bid to reassure Russians that the currency would not fall sharply while they were distracted by the holidays, deputy central bank chief Alexei Ulyukayev promised any fall would be gradual.
"Some strange information has been spread that the central bank is planning to sharply weaken the ruble 10 minutes before trading ends for New Year," Ulyukayev said in an interview with Vesti-24 television. Meanwhile the central bank allowed the ruble to weaken slightly against its benchmark dollar-euro currency basket.