The Russian currency has hit a 32-month low against the U.S. dollar as the wartime economy faces another blow.

President Vladimir Putin assured the public that there was no need to 'panic,' and the central bank took action. Despite the Kremlin's assurances, concerns are growing among both the general public and industrial leaders.

In response, the Bank of Russia has been raising interest rates to record highs to curb inflation. The bank has said it is prepared to hike the cost of borrowing further - now at 21% - to whatever rate is necessary to cool inflation and bring it back to the 4% target level, the report said.

President Vladimir Putin said there isn’t any reason for Russians to panic after the currency fell to its lowest level since the days following Moscow’s invasion of Ukraine.

The Russian currency has plummeted to its lowest level since the start of Vladimir Putin's full-scale invasion of Ukraine.

Russia's currency has hit its weakest level since its invasion of Ukraine. The depreciation of the rubel comes after Washington sanctioned Gazprombank and challenges are mounting for Moscow to manage its war economy.