MOSCOW: The Russian rouble pared losses on Friday after the central bank cut its main lending rate by 0.5 percentage points as expected, with traders cheered by the bank's more optimistic outlook on the economy.
At 1115 GMT, the rouble was 0.1 percent weaker against the dollar on the day at 64.39 after being down around 0.5 percent in the minutes leading up to the decision.
The Russian currency opened weaker on a decline in oil prices and on expectations the central bank would cut rates for the first time since July last year.
It delivered a 50 basis point cut, as forecast in a Reuters poll.
"The market took the central bank decision positively," said Sergey Romanchuk, head of foreign exchange and money markets at Metallinvestbank in Moscow.
He said traders were focusing on the bank's more upbeat comments in a statement accompanying its rate decision. The central bank said it saw signs of an " imminent growth recovery in the economy" and decreased inflation expectations.
"Its assessments for the prospects of economic growth and slowing inflation are rather reliable," Romanchuk said.
Since Friday's cut is seen as the first in an easing cycle, Romanchuk said the rouble could be supported in the short term as investors would be keen to buy high-yielding rouble-denominated assets before rates are cut further.
Brent crude oil, a global benchmark for Russia's main export, was down 1.1 percent at around $51.4 a barrel, weighing on Russian assets.
Analysts also said a long holiday weekend ahead in Russia was negative for the rouble, which tends to shed some value before any extended breaks in trading. Russian share indexes were lower on Friday.
The dollar-denominated RTS index was down 1.5 percent to 937 points, while the rouble-based MICEX was 0.9 percent lower at 1,916 points.
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