MOSCOW, Nov 27 — The Russian rouble stabilised today, hovering not far from last week’s multi-month high, still supported by exporters’ foreign currency sales and high interest rates.
At 0744 GMT the rouble was 0.2 per cent weaker against the dollar at 88.75 and had lost 0.2 per cent to 97.25 against the euro. Against the yuan, it shed 0.1 per cent to 12.39 CNY.
The rouble has strengthened against the dollar for seven weeks in a row. It could reach the 85 mark this week, said Alor Broker’s Alexei Antonov, but could then struggle.
“December has always been a bad month for the rouble,” Antonov said. “Usually at the end of the year financial liquidity increases due to the budget finalising payments with its contractors (and) many people buying foreign currency to spend the New Year holidays abroad.”
The rouble has firmed from beyond 100 since last month’s announcement of a presidential decree requiring some exporters to convert a significant portion of foreign exchange revenue.
Month-end tax payments, due on Tuesday, are also supporting the Russian currency.
Kremlin aide Maxim Oreshkin last week said the reduction in capital outflows had helped the rouble to rebound, along with a stabilising balance of payments. Strong consumer demand could limit a further rise in the currency, he said.
Meanwhile, the Bank of Russia’s interest rate hike to 15 per cent in late October has also buttressed the currency. The bank, which has signalled that another increase may be needed before it can start lowering the cost of borrowing, is due to meet on Dec. 15.
Brent crude oil LCOc1, a global benchmark for Russia’s main export, was down 0.4 per cent at US$80.23 a barrel, slipping as investors awaited an OPEC+ meeting this week for a potential agreement to curb supplies into 2024.
Russian stock indexes were largely steady.
The dollar-denominated RTS index .IRTS was down 0.1 per cent at 1,142.0 points while the rouble-based MOEX Russian index .IMOEX was unchanged at 3,217.7 points. — Reuters
