Russian rouble hits more than 1-week peak on high oil prices

MOSCOW: The Russian rouble strengthened on Friday, hitting a more than one-week high versus the dollar, supported by strong oil prices and the prospect of month-end tax payments which usually prompt exporters to convert their foreign currency holdings.

The rouble has endured a topsy-turvy month, strengthening in the run up to a summit between President Vladimir Putin and U.S. President Joe Biden before being knocked back by the threat of more Western sanctions against Moscow and hawkish U.S. Federal Reserve rhetoric.

It has recovered most losses sustained in the past week and has largely ignored a spat between Russia and Britain over what Moscow called provocative actions by the British navy off the coast of Russia-annexed Crimea.

By 1237 GMT, the rouble was 0.3% stronger against the dollar at 72.07, earlier reaching 72.04, its strongest since June 16.

The rouble was supported by the month-end tax period and a move beyond 72 versus the dollar today could not be excluded, Alor Broker said in a note.

It had gained 0.2% to trade at 86.18 versus the euro .

Emerging market assets were also boosted after Biden embraced a bipartisan Senate infrastructure deal, raising hopes for an extended rebound in the world's largest economy.

The Belarusian rouble was marginally firmer after the European Union on Thursday imposed wide-ranging economic sanctions on Belarus for the first time, targeting its main export industries and access to finance a month after it forced a Ryanair flight to land in Minsk.

Belarus sovereign dollar-denominated bonds were unfazed by the latest measures. , and although the sanctions package could have been more harmful, Belarusian assets face a tricky few weeks.

"I would expect technicals in Belarus sovereign bonds to stay weak for some time, as many western asset managers are likely to continue gradually reducing the exposure," said Alexey Bulgakov, fixed income analyst at Renaissance Capital.

Brent crude oil, a global benchmark for Russia's main export, was up 0.2% at $75.71 a barrel.

Russian stock indexes were mixed.

The dollar-denominated RTS index was up 0.3% to 1,669.9 points. The rouble-based MOEX Russian index was 0.1% lower at 3,820.5 points.