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Rouble slips as central bank cuts rates to record low

Credit: REUTERS/MAXIM SHEMETOV

The rouble extended losses against the U.S. dollar on Friday as the Russian central bank cut its key interest rate to a record low of 4.25% and said it would consider the need for further monetary easing.

(Updates with key rate cut)

MOSCOW, July 24 (Reuters) - The rouble extended losses against the U.S. dollar on Friday as the Russian central bank cut its key interest rate to a record low of 4.25% and said it would consider the need for further monetary easing.

At 1056 GMT, the rouble was 0.4% weaker against the dollar at 71.74 and had lost 0.3% to trade at 83.10 versus the euro , its lowest level since April 22.

The rate cut was in line with a Reuters poll that forecast Russia would trim the cost of lending for a fourth time this year to support the economy hit by COVID-19.

Central Bank Governor Elvira Nabiullina will address the bank's decision at an online news conference at 1200 GMT.

"We think that with this cautious cut, the central bank is signalling that it has already given all emergency stimuli to the economy, and that starting from this meeting, it will return to its usual implementation of monetary policy," said Stanislav Murashov, an analyst from Raiffeisenbank.

Oil prices edged higher on Friday, helped by a weaker dollar, which slid to 22-month lows against a basket of currencies .

But investor concern is growing that surges in coronavirus cases and growing tensions between the United States and China, the world's top two oil consumers, could further disrupt global trade. [O/R]

Brent crude oil , a global benchmark for Russia's main export, was up 0.6% at $43.58 a barrel.

Russian stock indexes were mixed. The dollar-denominated RTS index was down 0.6% to 1,253.4 points. The rouble-based MOEX Russian index was nearly flat at 2,853.8 points.

For Russian equities guide see

For Russian treasury bonds see (Reporting by Gabrielle Tétrault-Farber; additional reporting by Andrey Ostroukh and Vladimir Abramov; Editing by Hugh Lawson) ((Gabrielle.Tetrault-Farber@thomsonreuters.com;)) Keywords: RUSSIA MARKETS/ (UPDATE 1)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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