Russian rouble at one-month high vs dollar after central bank leaves rates unchanged
- The rouble was 0.3% stronger against the dollar at 76.37 after touching 76.12, its strongest since Sept. 22.
- Investors are now focused on what the outcome of the US presidential election on Nov. 3 might mean for the Russian currency.
MOSCOW: The Russian rouble gained on Friday, reaching a one-month peak against the dollar as the central bank left interest rates unchanged at 4.25%.
By 1051 GMT, the rouble was 0.3% stronger against the dollar at 76.37 after touching 76.12, its strongest since Sept. 22. Versus the euro, the rouble was up 0.1% to 90.43 .
The decision to keep the rate at a record low was in line with a Reuters poll that forecast Russia would leave the cost of lending unchanged amid increased global market volatility, but the central bank said a rate cut was still possible in the coming months.
Central Bank Governor Elvira Nabiullina will shed more light on her bank's plans at an online media conference at 1200 GMT. She was also due to discuss the economy with President Vladimir Putin, the Kremlin said.
Since hitting a six-month low in late September, the rouble has weathered a series of geopolitical risks, including sanctions on top Russian officials, a political crisis in neighbouring Belarus and a military conflict in the South Caucasus.
Investors are now focused on what the outcome of the US presidential election on Nov. 3 might mean for the Russian currency.
"A (Joe) Biden US presidential victory is gaining momentum, elevating speculation that Washington will take a harder line with Moscow," said BCS Global Markets in a note.
Brent crude oil, a global benchmark for Russia's main export, was up 0.6% at $42.72 a barrel. Putin on Thursday hinted that Russia could extend oil output cuts should the situation warrant it.
Russian stock indexes were up. The dollar-denominated RTS index rose 0.8% to 1,163.9 points. The rouble-based MOEX Russian index was 0.6% higher at 2,820.9 points.
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