Rouble down more than 11% after rate hike

Moscow

THE rouble plunged more than 11 per cent against the dollar on Tuesday in its steepest intraday fall since the Russian financial crisis in 1998 as confidence in the central bank evaporated after an ineffectual rate hike.

The rouble opened around 10 per cent stronger against the dollar after the central bank unexpectedly raised its benchmark interest rate by a hefty 650 basis points to try and halt the currency's slide, but it reversed gains in volatile trade and repeatedly set new record lows.