The ruble hit another record low against the dollar Thursday even after Russia's Central Bank sought to ease the selling pressure on the currency by raising interest rates again, according to AP. The currency has been plunging in recent weeks in the wake of the sharp fall in oil prices. The Russian economy and the government's budget plans are hugely dependent on oil-related revenues. The Central Bank raised its key interest rate by a percentage point to 10.5 percent, citing an increasing rise in consumer prices and "significant inflation risk." The bank said inflation is expected to hit 10 percent for 2014 and rise further in the first quarter of 2015. A falling currency can stoke inflationary pressures by increasing the price of imports. Despite the rate rise, the ruble continued its slide. The currency broke above 55 rubles to the dollar for the first time ever as it struck its new all-time low of 55.80, a one-day decline of 1.5 percent. And against the euro, it was heading toward the 70 ruble threshold for the first time, hitting 69.14 rubles to the euro. Russian stocks were down sharply and the RTS stock index closed 3.6 percent lower. Fitch Ratings said the latest rate rise highlights the challenges posed from rising inflation and the falling ruble. -- SPA 21:12 LOCAL TIME 18:12 GMT تغريد
