Rouble extends losses after rates slashed; Eurobonds in focus

Propped up by capital controls, the rouble had artificially risen to become the world's best-performing currency so far this year

The Russian rouble extended its losses on Friday after plunging the previous session as the central bank slashed interest rates, signalling more cuts to come, and the prospect of easing capital controls and a possible sovereign default hammered the currency, Qazet.az reports.

The rouble slumped around 10% to the dollar and euro on Thursday as the central bank cut its key rate to 11%, the third 300-basis-point cut in a row, as inflation slows from more than 20-year highs.

At 0727 GMT, the rouble was 2.1% weaker against the dollar at 66.63 , a more than two-week low. On Wednesday, the rouble had hit its strongest level since February 2018 of 55.80 against the greenback.

Versus the euro, the rouble lost 4.4% to trade at 70.99 , tumbling further away from the seven-year high of 57.10 hit on Wednesday.

Propped up by capital controls, the rouble had artificially risen to become the world's best-performing currency so far this year. New gas payment terms requiring conversion of foreign currency into roubles and a fall in imports have also helped.