The weakening of the ruble, which hit a five-month low in Tuesday trade, may push up inflation in Russia, Deputy Economic Development Minister Andrei Klepach said on Tuesday.
As of 2:03 p.m. Moscow time (10:03 GMT), the ruble fell by 10 kopecks to 32.20 rubles to the dollar on the MICEX-RTS foreign exchange market, past the psychological level of 32 rubles, the lowest level since December 30, 2011.
“Of course, these developments are negatively affecting inflation but so far these risks are limited,” Klepach told Prime news agency, adding the impact would be felt with some time lag.
Klepach said, however, the ruble “may strengthen, if there is no more negative news.”
Foreign exchange market participants said the ruble’s freefall was due to the aggravation of the eurozone debt crisis and a fall in global oil prices.