USD/RUB drops to lows near 57.00 post-CBR
|The Russian currency is trading on a firmer note vs. the buck at the end of the week, dragging USD/RUB to fresh lows near the 57.00 handle.
USD/RUB weaker on Brent gains
RUB gathered extra traction on Friday following a better tone in crude oil prices, which are recovering some ground after Thursday’s drop. The barrel of Brent crude is advancing for the first time since last Friday, testing the $50.80 area after bottoming out near $49.70 on Wednesday.
The pair bounced off lows after the Russian central bank (CBR) unexpectedly cut its key rate by 25bp to 9.75% at its meeting earlier today.
The CBR noted the decline in domestic consumer prices has overshot the bank’s forecasts while inflation expectations stay on the downside. In addition, the CBR noted the economy keeps recovering faster than estimated and it now expects the inflation to reach the 4% target at some point in late 2017.
At the same time, the CBR left the door open for further rate cuts in Q2 and/or Q3.
USD/RUB levels to watch
At the moment the pair is losing 0.33% at 57.24 and a break below 57.00 (low Mar.21) would aim for 56.57 (2017 low Feb.15) and then 56.20 (low Jul.10 2015). On the other hand, the next hurdle aligns at 58.18 (20-day sma) followed by 58.19 (high Mar.22) and finally 58.79 (55-day sma).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.