MOSCOW: The Russian rouble firmed at Friday's open, retaining support from month-end tax payments, and stocks indexes inched higher before the central bank interest rate meeting.
The central bank is expected to leave key interest rates unchanged and is expected to start easing monetary policy in the first quarter to prop up the economic growth.
The market is unlikely to react to an 'on-hold' decision, which is already priced in.
By 0626 GMT, the rouble firmed 0.2 percent to 31.29 versus the dollar, its strongest since Dec. 8 and had added 0.1 percent to 40.91 against the euro.
The rouble enjoys support from export-focused companies that convert foreign currencies to meet local month-end tax duties.
Versus the euro-dollar basket, the rouble strengthened 0.05 percent to 35.64 after on Thursday it left the range of 35.70-37.70 where the central bank sells a few hundred million dollars a day to support the Russian currency.
"The market is likely to consolidate at levels of 35.60-35.70 roubles per basket today," said Alexander Panasenko, a dealer at Metallinvestbank, adding that export-related flows will rule the market.
Still strong oil prices around $108 per barrel supported the Russian stock market, with the dollar-based RTS index up 0.5 percent and the rouble-traded MICEX climbing 0.2 percent.
Comments
Comments are closed for this article.