MOSCOW: The Russian rouble firmed on Tuesday to levels not seen since August last year, supported by demand related to month-end tax payments and upcoming auctions of Russia's OFZ treasury bonds.
The rouble gained 0.1% to 62.53 versus the U.S. dollar , the level it was last at on Aug. 1, 2018, taking its year-to-date gain to 11%.
Against the euro, the rouble was 0.2% stronger at 71.20 .
The rouble enjoys support from tax payments that usually prompt export-focused companies to convert their foreign currency revenues to meet local liabilities.
Russia's currency is also buttressed by the finance ministry's weekly auctions, which on Wednesday will offer rouble-denominated OFZ bonds, which have proved popular among foreign investors.
On the global front, market players will keep an eye on a speech by U.S. Fed Chair Jerome Powell at the U.S. Council on Foreign Relations due later on Tuesday.
"Investors expect him to reiterate concerns about global economic weakness and the downside risks from increased protectionism ahead of this Friday's G20 meeting," VTB Capital analysts said.
Looking forward, the rouble is expected to weaken to 63 versus the dollar by the end of the week as it looks vulnerable around current levels, analysts at Rosbank said in a note.
Russian stock indexes were down, tracking a 0.4% decline in Brent crude futures to $64.61 per barrel..
The dollar-denominated RTS index was down 0.2% at 1,385.0 points after briefly hitting its highest since mid-2014 of 1,392.9. The rouble-based MOEX Russian index was 0.4% lower at 2,750.3 points.
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