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. Last Updated: 07/27/2016

Ruble Plummets on Inflation Worries

The ruble took another battering Tuesday, with banks reluctant to part with hard currency when domestic inflation is rising and the Central Bank showing no signs of trying to prop up the currency, traders said.

The ruble fell in the official session of early trade to a weighted average for today settlement of 30.8421 to the dollar after 30.8163 on Monday.

During the session, the dollar was traded within a 30.8302 to 30.8700 ruble range, with the last trade registered at 30.8550.

Based on the session results, the Central Bank set its official next-day ruble rate at 30.8421 compared with 30.8163 on Monday.

Traders said banks were concerned about rising inflation -- which hit a three-year high in January and has undermined sentiment for the ruble.

"When inflation is so high, support [for the ruble] could only be expected from the Central Bank. Banks will not sell dollars," said Vasily Ushakov, a dealer with Mosnarbank.