(Reuters) – The Russian rouble suffered further losses Friday, after plummeting in the previous session. This was despite the fact that the central bank slashed its interest rates. It signalled more cuts and the possibility of easing capital controls.

As inflation drops from over 20-year-highs, the ruble fell around 10% to the dollar, and the euro to $11 on Thursday.

The rouble, which was at 66.63 against the dollar, was 2.1% lower than the dollar as of 0727 GMT. This is a drop that has been more than two weeks. The rouble was at its highest level against the dollar since February 2018, when it stood at 55.80.

Comparable to the euro, the ruble lost 4.4% and traded at 70.99. It fell further than the 7-year high of 57.50 on Wednesday.

Capital controls had helped the rouble artificially rise to be the best performing currency in the world this year, despite being under pressure. A new set of gas payment terms, which requires conversion from foreign currency to roubles, and lower imports has helped.

However, it is now losing the support of the monthly tax period which usually sees export-focused businesses convert foreign currencies into roubles to cover local liabilities.

Maxim Reshetnikov, Economy Minister, stated Thursday that Russia’s currency strength was making Russian products uncompetitive in the international marketplace. This has raised concern about Russia’s export revenue and raised questions over Russia’s negative effect on Russia’s budget.

He anticipates that the obligatory percentage of foreign currency revenue exporters should convert to roubles will drop further from 50%.

Russia’s National Settlement Depository is center of attention. It has pledged to pay interest payments Friday in the amount of $71.25million and 26.5 million euros ($28.5m) on its two Eurobonds.

This is even though Washington decided against the extension of an important licence which had allowed Moscow bondholders to continue receiving payments despite its sanctions in Ukraine.

Russian stock indexes varied.

At 1,146.4 points, the dollar-denominated RTS Index was 2.4% lower. At 2,425.4 points, the MOEX Russian index which is based on rouble was 0.5% lower.

($1 = 0.9305 euros)