MOSCOW: The Russian rouble strengthened against the U.S. dollar on Friday, receiving limited support from foreign currency sales by exporting companies to make their rouble tax payments.
By 1020 GMT, the rouble was up 0.9% at 83.70 against the dollar in the over-the-counter market. The Russian currency is up more than 26% against the dollar this year, mostly on expectations of easing geopolitical tensions.
Against the Chinese yuan, the most traded foreign currency in Russia, the rouble was down 0.2% to 11.45, on the Moscow Stock Exchange.
Given the broader rouble rally, the tax payments, while providing some support, did not have a big impact on the rate, analysts said.
Russian rouble gets little support from corporate tax payments
“It is likely that exporters have formed the necessary reserve of roubles in advance to get through the tax period,” said Evgeny Loktyukhov from PSB bank.
Russia’s Finance Minister Anton Siluanov said on March 26 that the rouble’s exchange rate would correct as demand for cheaper imported goods, and therefore foreign currency, rose as the result of the rally.
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