Russian ruble falls after interest rate cut

The Russian ruble fell today after rising to its highest level against the euro since June 2020 after an unexpected interest rate cut by the central bank as the bank cut its key rate to 17% from 20% before the regular board meeting scheduled for April 29.

The ruble fell against the US dollar by 0.4% to 76.08 after rising to 71, its highest level since November, and the ruble fell against the euro by 1.5% to 82.70 after rising to 77.0750, its highest level since June 2020. The yield on the OFZ 10-year Treasury fell to 10.77% from 11.62% before the rate cut, and Finance Minister Anton Siluanov said this week that his ministry is working with the central bank on measures to make the ruble exchange rate more predictable and less volatile.