Russian rouble weakens ahead of off-schedule rate decision

The Russian rouble weakened ahead of an off-schedule central bank policy meeting that will likely see interest rates lowered on Thursday, though it still traded not far from multi-year highs against the euro and dollar, buoyed by capital controls.

The Russian rouble weakened ahead of an off-schedule central bank policy meeting that will likely see interest rates lowered on Thursday, though it still traded not far from multi-year highs against the euro and dollar, buoyed by capital controls. The central bank is due to announce its decision on rates at 0730 GMT. Several analysts expect a key interest rate cut to 12% from 14%. Before Russia sent tens of thousands of troops into Ukraine on Feb. 24, the rate stood at 9.5%.

At 0703 GMT, the rouble was 1.7% weaker against the dollar at 60.33 and had lost 2% to trade at 61.86 versus the euro. The rouble is the world's best-performing currency so far this year, supported by capital controls, new gas payment terms requiring conversion of foreign currency into roubles, and a fall in imports.