Chart(s) of the Week: Currency Collapse in Russia

Due to plummeting oil prices and economic sanctions, the Russian ruble has lost about half its value to the dollar this year, losing about a quarter of that in the last week alone. Hoping to reverse this downturn, on Monday the Russian Central Bank raised interest rates to 17 percent from 10.5 percent. To Russia’s dismay, this move has only increased panic in the market. After a brief rally early Wednesday on news that the Finance Ministry will sell foreign currency reserves, the ruble continues to weaken.

If the central bank cannot gain control on its currency, Russia is poised for a recession, adding another headwind to the global economy. Investors are piling into safe havens as these global concerns continue to increase, pushing the 10 year Treasury yield to 2.07%, its lowest since May 2013.