The Russian ruble falls above 58 against the dollar after cutting interest rates

The Russian ruble fell above 58 against the dollar on Friday, falling to its weakest point during the morning after the central bank cut interest rates for the fourth time this year by 150 basis points to 8 percent, exceeding expectations.

By 1047 GMT, the ruble fell 1.9 percent to 58.14 against the dollar minutes after the central bank’s decision was announced. It also fell one percent to 57.79 against the euro on the Moscow Stock Exchange.

The ruble has become the world’s best-performing currency so far this year, buoyed by measures taken to protect Russia’s financial system from Western sanctions imposed on the country over its February 24 invasion of Ukraine. These measures included restrictions on Russian families withdrawing their savings in foreign currencies.

Prior to February 24, the ruble was trading near 80 against the dollar and 85 against the euro.