Courses of the dollar and the Euro fell after the rate cut, the Central Bank

The decision of the Central Bank of Russia to reduce the key rate by 0.5 percentage points (to 10.5%) caused a jump in exchange rates on the Moscow stock exchange. Immediately after the news the dollar and the Euro rose against the ruble by about 20 kopecks., but then plummeted.

At a minimum cost of €1 dropped to a mark of 72.48 RUB 27 kopecks below yesterday’s closing level and more than 84 kopecks. less than high hit on Friday morning.

Simultaneously, the dollar was close to 64 rubles, losing about 80 kopecks compared to the morning maximum. At the peak of the fall of the dollar fell to 64,1075 RUB 22 kopecks below yesterday’s closing level.

“If the Central Bank will surprise the market and to lower rates, the first reaction in the spot market will be the growth of the pair dollar/ruble, which would then be offset by supply from non-residents, as the ruble has support as a result of demand for rouble bonds,” predicted earlier, Sberbank CIB analysts Tom Levinson and Iskander Lutsky.

By 1400 GMT the dollar on the Moscow stock exchange amounted to 64,2925 Euro – 72,61 RUB.

On Friday, the Board of Directors of the Bank of Russia for the first time since July 2015 lowered its key interest rate, the Rate fell 0.5 percentage points to 10.5% per annum.