On Wednesday, March 4, the Russian currency is moderately strengthening on the Moscow Exchange. In the middle of the day, the dollar and the euro fell by 0.7%, as a result, the value of the American currency reached 65.5 rubles, and the European currency 73.2 rubles.

The official exchange rate of the Central Bank on March 5 was 66.08 rubles per dollar and 73.74 rubles per euro.

Interviewed RT analysts attribute the observed appreciation of the Russian currency to the American one with a noticeable weakening of the dollar in the world market. The corresponding DXY index fell 0.02% and is trading near the minimum level since mid-January - 97 points. Such data are provided by the international exchange ICE.

The US currency began to get cheaper in the evening of March 3 after the US Federal Reserve cut from 1.5-1.75% to 1-1.25% per annum. The leadership of the American regulator made such a decision amid the rapid spread of coronavirus.

“Coronavirus poses growing risks to economic activity. In light of these risks and in support of achieving maximum goals in the field of employment and price stability, the Federal Committee for Open Market Operations decided to reduce the target range of the federal funds rate by 0.5 percentage points, to 1-1.25%, ”the statement says. Fed message.

Traditionally, the Federal Reserve cuts the rate to stimulate the economy during the growth of uncertainties. The actions of the regulator lead to cheaper loans, increased consumption and investment, but at the same time cause a weakening dollar.

“Globally, interest rate cuts are a negative factor for the dollar. Yields on bank deposits run the risk of falling to zero, as well as government treasuries. In the long run, this situation should increase the demand for risky assets, including the ruble, ”said EXANTE managing partner Alexei Kiriyenko in an interview with RT.

According to analysts, in many ways, a sharp decline in the US Federal Reserve rate was a surprise to investors. As experts explain, the decision of the American regulator was to reassure market players against the backdrop of the recent global fall in stock exchanges.

“It was unexpected that the Fed lowered the rate without waiting for the official meeting scheduled for March 17-18. Perhaps the Fed leaders were scared by the threat of a further decline in stock markets, which could lead to increased panic and irreversible consequences. Therefore, the regulator decided not to wait for the next collapse of quotations and start pouring cheaper borrowed money into the market, ”Ivan Kapustyansky, Forex Optimum Leading Analyst, explained to RT.

The stock markets of most countries began to decline sharply from February 24 due to the rapid spread of coronavirus COVID-19 infection outside mainland China. According to the latest data, the number of infected people in the world exceeded 94 thousand people, more than 3.2 thousand of them died.

“With the increasing number of coronavirus cases worldwide, markets have begun to better assess the risks of its impact on the global economy. Such a revaluation led to a panicky decline in stock quotes, as well as gold and oil prices. As a result, last week was the worst for the US market since 2008, ”added Alexey Kirienko.

Note that after the US Federal Reserve, the Hong Kong Monetary Authority also lowered the interest rate. According to Gennady Nikolaev, an expert at the Academy of Financial and Investment Management, RT, the European Central Bank and the Bank of Japan may take similar stimulus measures in the near future. As expected, the active easing of monetary policy by global regulators can support the global economy amid the risks of coronavirus.

At the same time, investors have so far ambiguously accepted the decision of the US Federal Reserve. So, after the Fed reduced the rate, the trading session on the US stock market closed completely in the red. The Dow Jones industrial index fell 2.94% (to 25,917 points), the S&P 500 corporate index fell 2.81% (to 3,003 points), and the high-tech NASDAQ lost 2.99% and fell to 8684 points.

“It is important to emphasize that on the basis of trading on Tuesday, markets fell, because the emergency measures of the Federal Reserve caused even more questions and concerns among investors. Most often, such close attention to the situation on the part of central banks and governments promises markets growth. However, in most cases, market recovery does not occur immediately after the decision of the regulators and takes time, ”Kiriyenko concluded.