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13 Mar 2015
USD/RUB testing 61.00
FXStreet (Edinburgh) - The Russian ruble is appreciating vs. the US dollar on Friday, dragging USD/RUB to test the 61.00 support.
USD/RUB stronger post-CBR
The Russian currency is gaining further ground despite the CBR lowered its key rate by 100 bp to 14.0%, in line with the 100-200 bp expected by the broader markets. The central bank also cut the deposit rate to 13.0% from 14.0% and the repo rate to 15.0% from 16.0%.
The CBR justified the rate cut in the current slowdown of the domestic economy, although it stated that the rate cut will not fuel inflationary risks. The central bank sees consumer prices slowing to 9% by March 2016 and to reach the target at 4% during 2017. The CBR also forecasted that the economy could contract 3.5%-4.0% during the current year.
The next monetary policy meeting will be on April 30th.
USD/RUB levels to consider
At the moment the pair is down 0.64% at 60.98 with the next support at 60.20 (low Mar.12) ahead of 59.23 (low Mar.6) and then 57.77 (low Jan.5). On the upside, a breakout of 63.23 (high Mar.11) would aim for 64.59 (high Feb.23) and finally 67.48 (high Feb.12).
USD/RUB stronger post-CBR
The Russian currency is gaining further ground despite the CBR lowered its key rate by 100 bp to 14.0%, in line with the 100-200 bp expected by the broader markets. The central bank also cut the deposit rate to 13.0% from 14.0% and the repo rate to 15.0% from 16.0%.
The CBR justified the rate cut in the current slowdown of the domestic economy, although it stated that the rate cut will not fuel inflationary risks. The central bank sees consumer prices slowing to 9% by March 2016 and to reach the target at 4% during 2017. The CBR also forecasted that the economy could contract 3.5%-4.0% during the current year.
The next monetary policy meeting will be on April 30th.
USD/RUB levels to consider
At the moment the pair is down 0.64% at 60.98 with the next support at 60.20 (low Mar.12) ahead of 59.23 (low Mar.6) and then 57.77 (low Jan.5). On the upside, a breakout of 63.23 (high Mar.11) would aim for 64.59 (high Feb.23) and finally 67.48 (high Feb.12).