Russia has hiked interest rates to 12 percent after the rouble fell to its lowest value in 16 months. The currency fell past 100 per dollar yesterday, prompting Russia's central bank to hold an emergency meeting.

Meanwhile, today the currency recovered slightly to 98 roubles to the dollar, but it remains much weaker than it was last year. The Bank of Russia said, it decided to raise interest rates from 8.5 percent to curb inflation, which hit 4.4 percent in August.

Pressure has been mounting on the Russian economy due to imports rising faster than exports and military spending growing. Russia has been targeted with sanctions by Western countries following its conflict with Ukraine in February 2022.