Russian rouble firms to 10-week high below 71 to the dollar

• The rouble was 0.3pc stronger at 70.86, having earlier reached 70.81, a level last seen on March 10.
• The rouble retained support from central bank daily foreign currency sales, which stood at the equivalent of 11.3 billion roubles ($159 million) earlier this week.
• The dollar-denominated RTS index was up 0.6pc at 1,233.3 points while the rouble-based MOEX Russian index was 0.2pc higher at 2,776.1 points.

MOSCOW: The Russian rouble firmed on Thursday to a 10-week high below 71 versus the dollar, helped by rising oil prices and an improving global appetite for riskier assets.

At 0721 GMT, the rouble was 0.3pc stronger at 70.86, having earlier reached 70.81, a level last seen on March 10. Against the euro, it gained 0.3pc to trade at 77.78, an 11-week low.

The favourable attitude to risk could allow the rouble to test the level of 70 against the greenback soon, said Veles Capital analyst Elena Kozhukhova.

Brent crude oil, a global benchmark for Russia's main export, was up 1.5pc at $36.28 a barrel, benefiting from rising demand as countries gradually reduce strict restrictions aimed at thwarting the spread of the new coronavirus.

"On the back of hopes that the global economy has troughed, appetite for risk assets has resurrected, including for Brent and Russia risk," said BCS Global Markets analysts in a note.

The rouble retained support from central bank daily foreign currency sales, which stood at the equivalent of 11.3 billion roubles ($159 million) earlier this week.

The peak early next week of a month-end tax payment period that usually leads export-focused companies to convert foreign currency revenues to meet local liabilities should further buttress the currency.

Prices for Russia's OFZ treasury bonds hit record highs on Wednesday as the yield on the benchmark 10-year OFZ fell to 5.4pc , an all-time low. Bond yields move inversely to their price.

Wednesday's OFZ auctions saw a record one-day placement of rouble-denominated papers, worth almost 178 billion roubles.

Russian stock indexes were also rising.

The dollar-denominated RTS index was up 0.6pc at 1,233.3 points while the rouble-based MOEX Russian index was 0.2pc higher at 2,776.1 points.