EUR/RUB settles above 2-week low, posts 1% weekly loss

The EUR/RUB currency pair settled above Friday’s low of 91.6610, its weakest level since April 3rd, in the wake of the European Central Bank’s policy decision.

In the meantime, the Russian Ruble drew support from rising price of oil. Crude Oil, which accounts for about 26% of Russia’s total exports, rose 2.87% to $63.68 per barrel on April 17th.

The Euro lost ground after the ECB lowered all three of its benchmark interest rates by 25 basis points:

– the main refinancing operations rate to 2.40%;
– the deposit facility rate to 2.25%;
– the marginal lending rate to 2.65%.

The policy decision reflected higher confidence that inflation was on track to return sustainably to the ECB’s 2% target.

However, the ECB pointed out that the deteriorating outlook for the bloc’s economic growth remained a primary concern.

During the post-meeting press conference, ECB President Christine Lagarde said that the decision to lower rates was agreed upon by all Governing Council members. Lagarde acknowledged the “exceptional uncertainty” clouding the economic outlook, citing new trade barriers facing Euro Area exporters, disruptions of international commerce, financial market tensions and geopolitical uncertainty as significant headwinds.

The EUR/RUB currency pair settled 0.12% higher at 93.5320 on Friday.

The exotic Forex pair lost 1.09% for the week.