USD/RUB firmer, approaches 63.00 on CBR

The Russian currency is losing the grip at the end of the week, sending USD/RUB to the 63.00 neighbourhood following the CBR rate decision.

USD/RUB stronger post-CBR

The pair is recovering part of the ground lost on Thursday, testing the area of the 63.00 handle and trading at shouting distance from recent tops in the 63.20 region.

RUB lost further momentum after the Russian central bank (CBR) left unchanged its monetary policy stance at today’s meeting, leaving the key rate at 10.0% and matching initial estimates.

The CBR justified the decision after the board admitted that economic activity and inflation dynamics remain in line with previous projections from the central bank. The CBR argued that consumer prices are slowing down mainly due to ‘temporary factors’ while inflation expectations remains ‘unsteady’. The bank now expects to reach the 4% target at some point in late 2017.

Adding to RUB-selling, the barrel of Brent crude is losing smalls around $50.30, slipping back from yesterday’s tops near the $51.00 mark.

USD/RUB levels to watch

At the moment the pair is advancing 0.35% at 62.93 facing the next up barrier at 63.21 (high Oct.27) followed by 63.49 (high Oct.13) and finally 63.75 (55-day sma). On the downside, a break below 61.85 (2016 low Oct.10) would expose 60.70 (low Oct.9 2015) and then 48.79 (low May 13 2015).