MOSCOW, July 25 — The Russian rouble fell past 58 against the dollar in jittery Moscow trade today, adjusting to the central bank’s decision on Friday to cut interest rates, and as a rouble-supportive tax-payment period reaches its peak.
The rouble fell on Friday after Russia’s central bank cut its key interest rate by a bigger-than-expected 1.5 percentage points to 8.0 per cent and said it would study the need for more cuts as inflation slows and an economic contraction continues for longer than previously expected. The rouble’s strength has vexed officials as it dents Russia’s income from exports of commodities and other goods priced in dollars and euros. The central bank has eased some restrictions, but many capital controls remain in place.
“In the coming days, we may see a further weakening of the rouble against the US dollar amid ending of tax period and authorities’ verbal interventions, which may become real in ,” said BCS Global Markets in a note.