Rouble sinks, stocks plunge as Russia recognises Ukraine breakaway regions

The sharp drop in the rouble from levels around 70 to the greenback seen just four months ago is expected to fuel already high inflation, one of the main concerns among Russians, which would dent the country's already falling living standards. By 1956 GMT, the rouble fell 2.7% to 79.37 against the dollar RUBUTSTN=MCX. It had been as strong as 76.1450 earlier in the session.

MOSCOW The rouble tanked on Monday, slipping past 80 against the dollar, while stocks plunged to their lowest in over a year as Russian President Vladimir Putin called for the immediate recognition of two breakaway regions in eastern Ukraine.

Putin signed a decree recognising the breakaway regions in eastern Ukraine as independent entities, upping the ante in a regional crisis the West fears could erupt into war. Read full story