The ruble's recent appreciation lost momentum on Thursday following the Bank of Russia's decision to lower its key interest rate to 14% per annum.
Trading data from the Moscow Exchange showed the currency's gains slowing shortly after the announcement, with the exchange rate against the yuan hovering at 11.47 rubles as of 1:25 p.m.
The 25 basis point reduction marks a significant deviation from market consensus, which had largely priced out a cut at this meeting.
The move signals a tangible shift in the central bank's stance, suggesting policymakers are increasingly comfortable with the current inflation trajectory and economic conditions.
This surprise easing caught many market participants off guard, leading to immediate repricing in local currency markets.
The decision underscores the Bank of Russia's willingness to support economic activity despite lingering geopolitical and macroeconomic headwinds.