Russia’s rouble went into free-fall in Tuesday trading, falling repeatedly to hit record lows, despite the central bank’s dramatic decision to raise interest rates from 10.5% to 17%.
The rate rise was meant to strengthen the currency.
It helped it to 58 to the dollar early on Tuesday, but the dollar at one stage bought as many as 79 roubles.
The rouble has lost more than half its value against the dollar this year, hit by cheaper oil and Western sanctions.
Both of these have weakened the Russian economy.
Russia’s central bank has now pledged fresh further measures to try to stabilise its currency, with First Deputy Governor Sergei Shvetsov describing the situation as “critical”.
Share prices in banks thought to have exposure to Russia were down sharply. In Paris, Societe Generale was down 4.2% and shares in Italy’s Unicredit also fell.
However, the Russian stock market was higher, with the main Micex index up 2% in afternoon trading.