Rouble devalued further

Russia devalued the rouble again yesterday and Kremlin leaders urged government unity to deal with the biggest economic challenge in a decade.

Russia's central bank began a gradual depreciation of the rouble in November in response to slumping oil prices, a worsening economy and investors' flight from emerging markets.

Prime Minister Vladimir Putin, facing his first economic crisis, has ruled out any sharp rouble moves. Russians are mindful of the 1998 currency collapse. Unemployment is on the rise and real disposable income is falling.

"We can have different points of view on various problems. But at a time of global challenges it is important to maintain the unity of the government," President Dmitry Medvedev told a Cabinet meeting.

Russia's rouble policy is a topic of debate. Some economists say a gradual devaluation, designed to provide a softer landing than a big, one-off cut, is actually backfiring by pushing the economy faster into recession.

Mr Putin said the exchange rate policy was guided primarily by ordinary Russians' interests.