15 Sep 2009 12:30

Dollar, euro surge against ruble

MOSCOW. Sept 15 (Interfax) - The dollar and has strengthened considerably against the ruble due to the instability in the global markets and the prospect of further Central Bank rate cuts.

The dollar had surged 6 kopecks to 30.93 rubles/$1 in Tom deals on the MICEX exchange by 11:30 a.m. The euro was up 23 kopecks to 45.17 rubles. The bi-currency basket ($0.55 and EUR 0.45) was up 14 kopecks from yesterday's close at 37.34 rubles.

The dollar actually fell in the first few minutes of trading but then started to surge, rising as high as 31.13 rubles/$1 at one stage. The euro rallied as high as 45.4935 rubles/EUR 1 after a muted start to the day.

The dollar closed the MICEX Index Session at 30.9895 rubles/$1, or 12.78 kopecks above yesterday's level.

The Interfax Center for Economic Analysis said the ruble was slipping because oil prices had been under pressure since Friday due to concerns about demand. In addition, the ruble itself is feeling the after-effects of yesterday's announcement by the Central Bank that further rate cuts are in prospect: the CB has cut its refinancing rate and other key rates to 10.5% effective today.