MOSCOW: The Russian rouble weakened against the U.S. dollar and the Chinese yuan on Friday, losing support from corporate tax payments at the end of the month, as the influence of Russia-U.S. talks on the currency market began to wane.
At 1125 GMT, the rouble was down 0.9% at 87.75 against the dollar in the over-the-counter market. It also weakened by 0.6% to 12.09 against the yuan, the most traded foreign currency in Russia.
“The seasonal sales activity of exporters ahead of the tax payment deadline, which is today, was quite moderate yesterday, and from today it is expected to decline,” said Denis Popov from PSB Bank.
Russian rouble strengthens vs dollar after Putin outlines potential metals deals with US
The rouble is still up by 22% against the dollar so far this year and by 10% since the start of February, mostly due to expectations of better relations with the United States and an eventual peaceful settlement in Ukraine.
Analysts pointed to the lack of quick progress in Russia-U.S. talks as one of the factors contributing to the rouble’s weakness.
“Many investors are taking the opportunity to lock in profits as they are concerned about conflicting statements regarding the geopolitical situation and the lack of clear progress in this area,” said John Walsh from Alfa-Bank.
Comments
Comments are closed for this article.