Russian rouble flat vs US dollar after rate cut

MOSCOW, June 9 (Reuters) - The Russian rouble was flat against the U.S. dollar on Monday after weakening about 2% in the previous session, following the decision by the central bank to cut its key interest rate last week.

By 0820 GMT, the rouble RUB= traded at 78.80 per U.S. dollar, according to LSEG data based on over-the-counter quotes. The rouble has rallied by around 40% against the dollar so far this year.

The regulator cut the key rate by one percentage point to 20% on Friday in a surprise move it said was justified by declining inflation pressure and a more robust rouble. It was the first easing by the bank since September 2022.

Some analysts believed that the cut could trigger a rouble's weakening but after an initial fall on Friday the rouble has stabilised.

"Monetary policy easing is considered negative for the national currency, but currently there are no alternatives to rouble investments, so we do not expect an exodus from the rouble," Alor brokerage analysts said.

Against the Chinese yuan, the most traded foreign currency in Russia, the rouble strengthened by 0.4% to 10.96 on the Moscow Stock Exchange. The central bank uses yuan for foreign exchange interventions.