Ruble Trims Best Month Since 1993 as Rally Spurs Deeper Rate Cut - Bloomberg Business

Ruble Trims Best Month Since 1993 as Rally Spurs Deeper Rate Cut - Bloomberg Business:



"The ruble headed for its best month since at least 1993, spurring the central bank to cut interest rates for the third time this year to stem a rally that some analysts said had gone too far.



The currency has advanced 13 percent against the dollar in April, the strongest performance among all peers tracked by Bloomberg. While the Bank of Russia surprised most economists with a 150 basis-point reduction to its key rate on Thursday, the ruble only briefly extended declines to 1.8 percent before trading 0.7 percent weaker at 51.4080 per dollar by 3:13 p.m. in Moscow. Government bonds were set for a fourth month of gains.



The decision marks the latest attempt by policy makers to stem the appreciation, which risks undermining the nation’s earnings from oil exports as analysts project the worst fiscal shortfall since 2010. Easing inflationary pressures are paving the way for policy makers to keep cutting borrowing costs as the world’s largest energy exporter grapples with a recession."



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