The ruble is tumbling

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Russian ruble is tumbling after the Central Bank of Russia cut rates.

The currency is down 0.4% at 65.0423 per dollar as of 7:34 a.m. ET.

The CBR lowered its benchmark interest rate 50 basis points to 10.0%, as expected.

And, notably, the bank also indicated that it was done cutting rates until 2017.

“The statement accompanying today’s decision by the Russian MPC to lower interest rates was much less dovish than we had expected,” wrote Liza Ermolenko, emerging markets economist at Capital Economics, in a note.

“We still think there’s room for significant monetary easing over the next year or so, although the clear risk now is that this will come later and be smaller than we had previously anticipated.”

As for the rest of the world, here’s the scoreboard as 7:38 a.m. ET:

  • The US dollar index is up 0.2% at 95.48 ahead of several data points. CPI will be out at 8:30 a.m. ET; University of Michigan consumer confidence will cross the wires at 10 a.m. ET; and the Baker Hughes rig count will be released at 1 p.m. ET.
  • The Japanese yen is up 0.2% at 101.87 per dollar. Notably, the Bank of Japan meets next week. “We are sceptical that the BoJ will implement additional easing next week simultaneously with publication of the Comprehensive Assessment,” argued Citi Research’s Kiichi Murashima and Katsuhiko Aiba in a note to clients.
  • The euro is down 0.2% at 1.1219 against the dollar. Earlier, data showed that wages in the eurozone rose 0.9% in the second quarter year-over-year.
  • The British pound is weaker by 0.6% at 1.3168 against the dollar.
  • The Australian dollar is lower by 0.3% at .7500 per dollar.

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