- The USD / RUB loses more ground and breaks below 75.00.
- The Russian central bank (CBR) raised rates by 50 bp.
- The CBR said that inflationary pressures remain high.
The Russian ruble extends the bullish momentum and drags the USD/RUB to fresh multi-week lows in the zone below 75.00 on Friday.
USD / RUB weakened after aggressive CBR
The USD/RUB trades defensively for the third consecutive session at the end of the week. The pair saw its decline accelerated on Friday after the CBR surprised markets and raised the key policy rate more than expected by 50bps to 5.00%.
According to the central bank, the move was justified by incessant inflationary pressures coupled with the steady pace of recovery in domestic demand, which is seen as challenging the capacity of certain sectors.
In addition, the CBR left the door open for further increases in the next meetings, confirming its change to a more aggressive stance to bring inflation to levels in line with the bank’s goal.
Technical levels
At the moment, the pair is shedding 0.68% at 74.90 and a breakout of 74.68 (100-day SMA) would target 72.53 (March 16 low) and finally 70.00 (psychological level). On the other hand, the next barrier emerges at 77.29 (weekly maximum of April 21) followed by 78.57 (maximum of April 6, 2021) and then 80.00 (psychological level).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
