03-10-2014, 10:50 AM
Investors were not in a wait-and-see mood. Spooked by the news, they went on a selling spree, sending the benchmark MICEX stock index down almost 11 percent in one day and the ruble down 2 percent to a record low of 36.50 against the US dollar. In a bid to stabilize the currency, the central bank sold $11.3 billion of reserves, and unexpectedly raised its main interest rate 150 basis points to 7 percent last Monday in an attempt to quell capital flight. The loss of faith arguably could not have come at a worse time for Russia’s markets. The country’s economy is already struggling with stagnant growth, high inflation and a weakening currency.
Russia’s Crimea Standoff Ominous For Markets - Business Insider