MOSCOW, January 29 (RIA Novosti) – The Russian ruble continued its slide Wednesday to reach historic lows as a government minister warned that the currency’s continued plunge could cause a spike in inflation.
The euro climbed 55 kopecks to 48.02 rubles on Wednesday evening in Moscow, the ruble’s weakest showing against the European currency since trading began. The dollar rose 47 kopecks to 35.20 rubles by the same time, the ruble’s lowest value against the greenback since 2008.
If the ruble continues to weaken it will result in more expensive imports and could boost inflation, Russian Economic Development Minister Alexei Ulyukayev warned during a Cabinet meeting Wednesday, Prime business news agency reported.
Other emerging market currencies are falling alongside the ruble as the United States winds up giant money printing programs that have buoyed emerging markets, but the ruble’s dive has been among the most pronounced.
The Russian currency traded Wednesday outside the central bank’s trading corridor for the second time in 2014, as the regulator failed to keep the currency within the target band.
The central bank, which controls the value of the ruble through interventions on the currency market, has widened the target corridor for the ruble by 65 kopecks since the start of the year.