USD/RUB testing highs near 65.10 post-CBR

The Russian Ruble is losing further momentum on Friday, now pushing USD/RUB to test daily highs around 65.10.

USD/RUB higher on oil drop, CBR

RUB met further selling pressure after the Russian central bank (CBR) lowered its key rate by 50 bp to 10% at its meeting today, broadly in line with market expectations.

The central bank justified its decision following a slowdown in the domestic inflation, declining inflation expectations and unstable economic activity. The CBR added the key rate should remain unchanged for the rest of the year, opening the door for potential rate cut in Q1/Q2 2017, while consumer prices are seen rising at an annualized 4.5% in September 2017 and 4% later in the year.

Adding to RUB selling, the Barrel of Brent crude has fully retraced yesterday’s advance and is now trading in daily lows near $45.80.

USD/RUB levels to watch

At the moment the pair is advancing 0.34% at 64.99 and a surpass of 65.97 (high Sep.1) would aim for 67.15 (high Jun.14) and finally 68.76 (200-day sma). On the other hand, the immediate support lines up at 63.58 (low Sep.8) followed by 63.41 (low Aug.18) and then 62.75 (low Jul.14).