Russian rouble hits 74.0525 vs euro, over 2year high
Rouble touches 6month high of 70.3075 vs dollar
Russian central bank cuts rates by 300 bps to 14
Capital controls still affecting Russian market moves

April 29 Reuters The Russian rouble rose against the euro to the highest in more than two years on Friday and headed towards 70 to the dollar in Moscow trade before paring some gains, supported by capital controls as the central bank cut interest rates again.

The Bank of Russia cut its key interest rate by 300 basis points for the second time this month, to 14, as it tries to stimulate more lending in the economy in the face of high inflation, surprising analysts who had forecast a smaller reduction. 

Movements on Russian markets are affected by the rouble being propped up by capital controls, while stocks are trading with a ban on short selling and with foreign players barred from ditching shares in Russian companies without permission.

At 1052 GMT, the rouble was up 1.6 to trade at 74.20 against the euro , after earlier touching 74.0525, its strongest level since March 2020.

It was 1.4 firmer against the dollar at 71.09 , after earlier hitting a sixmonth high of 70.3075.

The rouble largely ignored the rate decision, but the market will be watching closely when Governor Elvira Nabiullina gives a media briefing at 1200 GMT.

Lower rates support the economy through cheaper lending but can also fan inflation and make the rouble more vulnerable to external shocks….