The USD/RUB currency pair has rebounded from recent 91-week low of 81.03, as the Bank of Russia kept borrowing costs on hold, in line with market consensus.

The Bank of Russia (CBR) left its key policy rate without change at a record high of 21% at its March meeting, while it noted that further tightening would likely not be required to support disinflation.

The CBR cautioned that inflationary pressures remained elevated as demand continued to exceed domestic capacity. Still, the central bank pointed out that pro-inflationary risks had subsided since the policy meeting in February.

Meanwhile, Russia’s President Putin has abstained from agreeing to all concessions proposed by the United States in a ceasefire deal following a call with US President Trump. This cooled optimism that a deal could bring peace between Russia and Ukraine.

Earlier in March, the Russian Ruble had surged to highs unseen since late June 2023 against the US Dollar due to signs the US may restore economic ties with Russia.

The USD/RUB currency pair was last down 0.36% on the day to trade at 84.6029.

The Russian Ruble also faced some pressure amid caution that the government may continue to relax capital controls to debase the currency.