USD/RUB edges higher to 57.70, session peaks

The Russian currency is posting moderate losses vs. its American peer on Friday, sending USD/RUB to the area of daily highs around 57.70.

USD/RUB up post-CBR decision

RUB is depreciating further today after the Russian central bank (CBR) cut the benchmark rate by 50 bp to 8.50% at today’s meeting, in line with market consensus and with comments by Governor E.Nabiullina in past weeks.

The CBR noted inflation remains near the 4% target and the economy keeps showing solid health, although inflation expectations ‘have not yet anchored at a low level’. The central bank also deems likely further rate cuts in the next two quarters.

On another front, RUB is unable to derive some strength from the rally in crude oil prices, with the barrel of the European reference Brent crude currently hovering over the $55.50 area, near to multi-month tops.

USD/RUB levels to watch

At the moment the pair is up 0.22%% at 57.62 and a surpass of 57.97 (high Sep.13) would expose 58.11 (21-day sma) and finally 58.40 (100-day sma). On the other hand, the next support is located at 57.39 (low Sep.14) seconded by 56.70 (low Sep.7) and then 56.00 (low May 25).