The Russian central bank has today announced a reduction in its main policy rate by 25 basis points to 8.25%, effective from Monday 29 March, in its attempt to loosen monetary policy further to stimulate its economy. Central bank sources pointed out that although trends in recent data are looking good for the recovery, fragility still remains an issue. The expectation by analysts had been in the 25-50 basis points for this month. The USDRUB has seen some strength, rising from 29.4860 to 29.550, possibly on the back of the rate cut being at the lower bound of economists' expectations.

On the news front, the main issue still remains the final outcome of the EU summit, where investors are probably looking for more details from the Eurozone leaders on their rescue plan for Greece. EURUSD rose by about 0.9% to 1.3380 from as low as 1.3260 overnight.Uncertainty still remains on how other European indebted nations like portugal, whose credit rating was cut yesterday, will be affected from the current crisis.