Carry trades are only appropriate for deep - pocketed entities because of two major risks: the risk of a sharp decline in the price of the invested assets and the implicit exchange risk when the funding currency differs from the borrower's domestic currency. (investopedia.com)
The currency's slide comes on the back on a sharp decline in the price of oil — Russia's main export and revenue source. (nbr.com)
Second, raising interest rates so as to «cool» the economy and increase unemployment would also cause a sharp decline in the prices of bonds and stocks. (religion-online.org)