EUR/RUB settles below 1-week high, posts weekly gain

The EUR/RUB currency pair settled below recent high of 95.1960, its strongest level since April 16th, in the wake of the Bank of Russia’s policy decision.

The Bank of Russia (CBR) left its key policy rate without change at a record high of 21% at its April meeting, in line with market consensus.

The central bank noted that despite inflationary pressures were gradually easing, they were still elevated.

The CBR warned a further slowdown in global economic growth and a slump in oil prices could increase inflationary pressure through the Ruble’s exchange rate dynamics.

The CBR projects inflation to ease to 7.0%–8.0% this year and return to 4.0% by 2026. It also kept its 2025 GDP growth forecast without change at 1% to 2%.

In the meantime, US President Trump’s envoy, Steve Witkoff, met Russia’s President Vladimir Putin in Moscow yesterday to discuss the US plan to end the war in Ukraine, while Kremlin foreign policy aide Yuri Ushakov described the meeting as constructive.

Meanwhile, the Euro softened after remarks from European Central Bank officials. ECB Governing Council member Olli Rehn voiced concerns regarding the potential for inflation in the Euro Area to fall below the central bank’s target of 2%. Rehn suggested that current economic conditions might warrant an interest rate cut as early as June, which could exert downward pressure on the Euro.

Adding to the cautious outlook for the Euro Area economy was commentary from OeNB Governor Robert Holzmann. He expressed concerns about underlying structural weaknesses within the bloc and how potential economic shocks could persist, even if the tariffs imposed by the US were to be reduced.

The EUR/RUB currency pair settled 0.57% lower at 94.2390 on Friday.

The exotic Forex pair gained 0.76% for the week.