Investing.com - The Russian ruble fell to record lows against the dollar on Wednesday as fresh falls in oil prices pressured the currency of the world’s largest energy exporter.
Oil prices fell to the lowest level since September 2003 on Wednesday, falling below $28 per barrel after the International Energy Agency said the supply glut in markets looks set to continue until at least late 2016.
The continued drop in oil prices, which are down more than 70% from their 2014 high, has hit global equity markets, hammering the energy and resource sectors and fueled increased safe haven demand.
The U.S. dollar jumped 2.86% to 80.862 against the Russian currency on Wednesday, an all-time high.
Russia depends on sales of oil and gas for the majority of its budgetary revenue and the collapse of the oil market has clouded the outlook for the crisis hit economy.
In addition to the slump in oil prices fears about the global economy have also contributed to widespread risk aversion so far this year.
Official figures on Tuesday showed that China’s economy grew 6.9% in 2015, the slowest rate of growth in 25 years, while the International Monetary Fund again cut its outlook for global growth for the next two years.
Japan’s Nikkei index dropped 3.7% on Wednesday and is now off 21% from its recent closing high in June, meeting the definition of a bear market.
Meanwhile, stocks in Hong Kong fell below 19,000 for the first time more than three years and the Hong Kong dollar fell to its weakest level against the U.S. dollar since 2007 amid fears that China’s slowdown is will affect the city’s markets.
Other Asian currencies also fell, with South Korea's won the loss leader, down 0.7%. The Taiwanese dollar extended losses, hitting its lowest level against the U.S. dollar since 2009, while the Indian rupee fell to an almost 29-month low against the U.S. dollar.