Russian Ruble Extends Decline To 4-1/2-month Low Vs U.S. Dollar After Rate Cut
July 31 2015 - 7:45AM
RTTF2
The Russian Ruble extended its decline against the U.S. dollar
in European deals on Friday, after Russia's central bank cut its
key interest rate for the fifth time this year, citing the prospect
of significant cooling in the economy despite a moderate increase
in inflation risks.
The Bank of Russia Board of Directors decided to reduce the key
rate to 11.00 percent from 11.50 percent. The decision was in line
with economists' expectations. On June 15, the bank cut its key
rate by 100 points.
The currency has trading weak in early deals, as oil prices
collapsed after OPEC Secretary-General Abdullah El-Badri signaled
that it would not cut production despite the fall in crude prices
over recent months and the prospects of greater supply of oil into
the market.
The Russian currency fell to 61.15 against the greenback, a
level not seen since March 19. Continuation of the ruble's
downtrend may lead it to a support around the 62.6 mark. The pair
was worth 59.51 when it closed yesterday's trading.
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