Russian ruble steady after Tuesday’s rate hike

The Russian ruble traded steady against the dollar on Wednesday, recovering from the day before, when the central bank hiked its key rate to 12 percent following an emergency meeting.

The ruble has shed around 30 percent of its value against the dollar since the start of the year, as Moscow grapples with falling export revenues and higher military spending.

After crashing to a more than 16-month low against the dollar on Monday, the central bank raised its key rate after the unscheduled meeting on Tuesday.

Data from the Moscow Exchange showed the ruble hovering around 97 to the dollar at 11:46 local time (0846 GMT), clawing back some ground after Tuesday’s volatility.

Inflation has also remained stubbornly high, despite the bank tightening monetary policy, with consumer prices rising 4.3 percent year-on-year in July.

The ruble may continue to strengthen against other currencies during the day, Banki.ru analyst Bogdan Zvarich said in a note published by financial firms.

“Despite the worsening situation in oil prices, the national currency will be supported by yesterday’s decision of the central bank to raise the interest rate,” he said.

He added that additional measures to support the currency, such as the possibility exporters will be obliged to sell their foreign currency earnings, may also boost the ruble.