The ruble slipped further past the 95 mark against the dollar as trading kicked off on the Moscow Exchange during the session’s auction. The euro followed suit, sliding toward the 103 ruble level as markets absorbed the latest moves.
By 16:32 Moscow time, the dollar traded at 94.32 rubles, down 2.77 rubles from the day’s start. The euro stood at 103.08 rubles, down 2.94 rubles, while the Chinese yuan weakened to 12.89 rubles, off by 36 kopecks, according to data gathered by tomorrow.
Analysts at BCS World of Investments, including stockbroker Dmitry Babin, attributed the ruble’s vulnerability to the Russian Central Bank’s surprise policy shift, which raised the key interest rate to 12 percent per year amid expectations that the regulator would tighten currency controls. Babin noted that the rate hike—an abrupt 3.5 percentage points—caught most observers by surprise, with many forecasting a more modest adjustment.
Earlier in the day, ahead of the Bank’s extraordinary meeting on the key rate, the ruble showed a brief rally as trading opened on the Moscow Exchange before easing again. In the course of the session, the dollar briefly touched around 92.6 rubles and the euro hovered near 104 rubles—the first such level since the month began, signaling a renewed tilt toward currency volatility.
Market observers highlighted that the central bank’s decision is likely to influence inflation expectations, capital flows, and the overall risk appetite across investors. The move comes amid ongoing debates about how tighter monetary policy will affect domestic borrowing costs, consumer prices, and the exchange rate dynamics in the near term. As traders digest the policy signal, attention remains on how the central bank will balance controlling inflation with supporting economic growth and financial stability. [Citation: Market Briefing, Financial Times style attribution]