Daily Times

The Russian rouble fell past 58 against the dollar in jittery Moscow trade on Monday, adjusting to the central bank’s decision on Friday to cut interest rates, and as a rouble-supportive tax-payment period reaches its peak. By 1339 GMT, the rouble was 1.3pc weaker against the dollar at 58.01. It had lost 1.2pc to trade at 59.02 versus the euro. The rouble fell on Friday after Russia’s central bank cut its key interest rate by a bigger-than-expected 1.5pcage points to 8.0pc and said it would study the need for more cuts as inflation slows and an economic contraction continues for longer than previously expected. Promsvyazbank analysts said the rouble would be likely to move towards the upper end of the 56-60 range against the dollar this week. The rouble’s strength has vexed officials as it dents Russia’s income from exports of commodities and other goods priced in dollars and euros. The central bank has eased some restrictions, but many capital controls remain in place. Month-end tax payments that usually prompt export-focused companies to convert part of their FX revenues into roubles have supported the currency in the last two weeks. Monday marks the peak of that period.