MOSCOW: The Russian rouble slipped to a six-week minimum versus the dollar on Thursday after the US Federal Reserve indicated it had no plans to cut rates further, having lowered the cost of borrowing for the first time in more than 10 years.
Fed Chairman Jerome Powell declared Thursday's cut was "not the beginning of a long series of rate cuts."
The Fed move sparked a sell-off on emerging markets where currencies suffered their biggest daily tumble of the year on Thursday after the dollar charged to a two-year high.
The rouble moved in line with its emerging peers. At 1325 GMT, the Russian currency shed 0.7pc of its value against the dollar to 64.05, its weakest since June 16.
Versus the euro, the rouble lost 0.3pc to trade at 70.7 .
The Russian currency also lost support from month-end tax payments that usually prompt export-focused companies to convert dollar revenues into roubles to meet local liabilities.
Freedom Finance brokerage analysts said they expected the rouble to hover in the range of 63.20-65.60 versus the dollar in August. Versus the euro, they expected the rouble to stay in the range of 69.70-72.85.
The rouble may come under extra pressure in August as the Finance Ministry is likely to increase its daily purchases of foreign currency for state reserves, a Reuters poll showed.
Prices for oil, Russia's key exports, played on the downside for the rouble and other Russian assets as they declined for the first time in six days following the US Fed move.
Brent crude oil was down 1.84pc at $63.85 a barrel.
The dollar-denominated RTS index was down 1.4pc to 1,341 points. The rouble-based MOEX Russian index was 0.5pc lower at 2,725 points.
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