A massive overnight rate hike by Russia's Central Bank has pushed the ruble 9 percent higher in early trading.

The ruble traded at 58 per dollar at the opening on Tuesday after losing about 10 percent on Monday in the biggest fall since the 1998 economic meltdown.

The surprise Central Bank announcement to hike the rate to 17 percent from 10.5 percent came in the early hours on Tuesday in a desperate move to prop up the trouble currency. It's the biggest interest rate hike since 1998, a year when Russia defaulted on its sovereign bonds.

The ruble has lost half of its value this year and the decline intensified in the past months by Western sanctions and plunging oil prices.