Russian Rouble Weakens on Debt Downgrade

The Russian rouble has weakened against the dollar following a downgrade of the country's debt rating by the ratings agency Moody's.

The rouble was trading at 40.85 to the dollar, down 0.2% from Friday. It has fallen 15% since sanctions were imposed on Russia in late March.

On Friday, Moody's cut its rating of Russian debt to BAA2, its second-lowest investment grade.

It blamed the economic damage caused by the sanctions.

In a statement, Moody's said: "The tightening of sanctions against Russia has already begun to aggravate the slowdown in economic growth and to undermine consumer and investor confidence in the country.

"Domestic demand slumped in the second quarter, including a notable decline in inventories and investment."