USD/RUB rebounds from 58.00 post-CBR

• CBR cuts rates by 25 bp to 7.50%.
• RUB drops below 58.00 vs. USD.
• Spot in fresh 7-week lows.

The Russian Ruble is depreciating vs. its American counterpart on Friday, pushing USD/RUB to test fresh multi-week peaks above 58.00 the figure.

USD/RUB in 7-week highs

RUB gathered extra selling pressure after the CBR cut its key rate by 25 bp to 7.50%, broadly in line with market expectations.

The CBR noted inflation remains sustainably low while inflation expectations ‘are diminishing progressively’. The central bank now sees that inflationary and economic risks poised a risk to the economic growth, while uncertainty surrounding the global markets has increased as of late. The central bank now expects to complete the transition towards a neutral monetary policy during the current year.

In addition, the bearish sentiment around crude oil prices keeps weighing on RUB and collaborating at the same time with the recent rally in spot.

USD/RUB levels to watch

At the moment the pair is losing 0.19% at 58.30 and a break below 58.17 (200-day sma) would aim for 57.65 (55-day sma) and then 56.98 (10-day sma). On the other hand, the initial hurdle is located at 58.42 (high Feb.9) seconded by 59.38 (high Dec. 8 2017) and finally 60.41 (high Nov.15 2017).