Russia's rouble plumbs new record low against dollar as oil tumbles

Russia's rouble currency on Thursday plummeted past a record low it set the previous day against the US dollar as prices for Russia's main export, oil, continue to tumble.

The rouble surpassed 85 per dollar in spot trading on the Moscow Exchange, according to the bourse's website.

The former finance minister, Alexei Kudrin, predicted on Thursday that the price of oil could drop from about 28 dollars per barrel currently, to as low as 16 dollars.

"It could be 18 or 16 dollars per barrel, but for a short time, then the price will adjust and rise," Kudrin told an economic forum in Moscow, the Interfax news agency reported.

Foreign direct investments in Russia fell 92 per cent last year, Interfax said Thursday in a separate report, citing analysis by the United Nations Conference on Trade and Development.

Falling oil prices have the potential to jeopardize Russia's stability by severely weakening its economy.

In the mid-1980s, a drastic drop in the value of oil precipitated the collapse of the Soviet Union.

Last update: Thu, 21/01/2016 - 13:17

More from Business

Samsung's quarterly profits more than double despite Note 7 debacle

Samsung's profits for the final quarter of 2016 were more than double the same period in the previous year, the...

Croatia presents investment opportunities to Alibaba

Representatives of the Chinese online company Alibaba are considering the Zadar area in Croatia as a location for...

Financial leaders in Davos optimistic about US, but see trade risk

The US economy will likely profit from the planned policies of its new president, as long as Donald Trump does not...

Facebook to build data centre in Denmark

The Danish city of Odense and social media giant Facebook announced on Thursday the city was to host a new European...

Freight train from China crosses 12,000 kilometres to London

The first Britain-bound freight train from China arrived in London on Wednesday, completing an 18-day trip across...