Russian rouble firms towards 72 vs dollar

MOSCOW: The Russian rouble firmed towards the 72 mark against the dollar on Thursday, helped by high oil prices and month-end tax payments at home that usually prompt export-focused companies to convert their dollar revenues to meet local liabilities.

At 0738 GMT, the rouble firmed 0.3% to 72.40 against the dollar, moving closer to 71.55, its strongest level since July reached on June 11.

"We expect the rouble to move to the lower boundary of the 72-74 range against the dollar," Promsvyazbank said in a note.

Versus the euro, the rouble gained 0.2% to 86.44 .

The rouble strengthened this month after President Vladimir Putin and U.S. President Joe Biden agreed to begin cybersecurity and arms control talks, though their summit highlighted discord on those issues, human rights and Ukraine.

But expectations that the U.S. Federal Reserve may raise rates and threats of more Western sanctions have since battered the Russian currency.

The rouble did not react to a Wednesday's incident in the Black Sea where Russia said it had fired warning shots and dropped bombs in the path of a British destroyer sailing in the Black Sea off the coast of the Crimean peninsula.

Brent crude oil, a global benchmark for Russia's main export, was up 0.5% at $75.54 after a bigger-than-expected drawdown in U.S. crude and gasoline stocks confirmed outlook for robust fuel demand.

Russian stock indexes, however, lacked momentum despite high oil prices.

The dollar-denominated RTS index was up 0.2% to 1,669.3 points. The rouble-based MOEX Russian index was flat at 3,838.4points, hovering near an all-time high of 3,865.20 reached last week.