The Russian ruble slid today as crude oil, Russia’s main export, fell amid concerns about the global economic slowdown. The currency weakened even after the central bank refrained from lowering interest rates for the eight month.
The Bank Rossii (the Bank of Russia) kept its lending rates unchanged today, including the main refinancing rate that stayed at 8 percent. The bank said in the statement:
According to the Bank of Russia estimates, gross output remains close to its potential level, which implies an absence of significant demand-pull price pressures. Production in manufacturing in the second quarter of the year was high, while consumer and producer confidence indicators remained fairly strong.
Russia is unique among emerging economies, being able to hold the borrowing costs while others had to cut them. That did not help the Russian currency, though.
USD/RUB advanced from 31.7545 to 31.8135 as of 14:35 GMT today.
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