USD/RUB tumbles to lows near 67.50 post-CBR
|- The Russian currency gathers extra pace following the CBR meeting.
- The pair challenges 2-week lows near 67.50.
- The Russian central bank (CBR) raised rates by 25 bps to 7.50%.
The Russian Ruble is extending the weekly upside and is now forcing USD/RUB to test fresh weekly lows in the mid-67.00s in the wake of the CBR meeting.
USD/RUB weaker on CBR hike
Spot has accelerated the leg lower after the Russian central bank (CBR) raised the key rate by 25 bps to 7.50% at today’s meeting, somewhat catching markets off guard as consensus was pointing to a steady stance from the CBR.
The CBR justified the move higher in rates after assessing that inflationary risks remain on the upside due to uncertainty overseas and is now expecting consumer prices to raise 5-5.5% in 2019 and return to around 4% in 2020.
The central bank also sees the economy expanding at an annualized 1.9% in Q2, matching the bank’s line between 1.5%-2.0%.
In the meantime, spot is losing ground for the fourth session in a row following the better tone in the EM FX space, the recent CBR decision and the broad-based selling bias hitting the buck.
USD/RUB levels to watch
At the moment the pair is losing 0.87% at 67.65 and a break below 67.32 (low Aug.21) would aim for 66.25 (low Aug.15) and finally 65.44 (55-day SMA). On the other hand, the next up barrier aligns at 68.21 (21-day SMA) seconded by 68.85 (10-day SMA) and then 70.58 (2018 high Sep.10).
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.