Russia makes drastic rate rise to 17% to stem rouble decline

Russia's central bank made a drastic interest rate move overnight, raising its key rate from 10.5% to 17%. 

The bank said the move was to try to ease the rouble's recent fall in value.

The rouble had lost 50% against the US dollar this year as falling oil prices and Western sanctions continue to weigh on the country's economy.

Before the move, the dollar bought 67 roubles. The rate rise moved it up to 58 against the dollar, although it has since slipped back to 62.

The 60 mark is considered a "psychological barrier" for Russia's national currency, says the BBC's Moscow correspondent, Steve Rosenberg.

Read more: Since the start of the year, the rouble has lost more than 45% of its value against the dollar.