Russian rouble firms past 73 vs dollar ahead of OPEC+ meeting

MOSCOW: The Russian rouble on Thursday strengthened past 73 versus the dollar while the MOEX stock index neared a record high, gaining support from higher oil prices ahead of the OPEC+ meeting on production cuts.

At 0730 GMT, the rouble was 0.3% stronger against the dollar at 72.89 and had gained 0.4% to trade at 86.43 versus the euro.

The OPEC+ group of oil producers meets on Thursday to decide on a further easing of output cuts next month and could also consider extending its overall supply pact beyond April 2022, sources within the group told Reuters.

Brent crude oil, a global benchmark for Russia's main export, was up 0.5% at $75.01 a barrel.

The rouble also saw support from expectations that the central bank will raise rates this month as inflation, its main area of responsibility, showed no signs of slowing.

Weekly inflation accelerated to 0.23% in the last week from 0.12% a week earlier. In annual terms, this translates into inflation of 6.4%, according to Sova Capital estimates, up from around 6% seen in early June.

"The current run rate could bring the final inflation figures for June to 0.7% m/m and 6.5% y/y, and we believe this could force CBR to take the decisive actions outlined recently by CBR Governor Elvira Nabiullina," Sova Capital said.

Nabiullina said this week the central bank will consider raising rates by 25-100 basis points at the July 23 board meeting.

Russian stock indexes were up.

The dollar-denominated RTS index rose 0.7% to 1,665.8 points. The rouble-based MOEX Russian index was 0.3% higher at 3,853.3 points, moving towards an all-time high of 3,865.20 it touched in mid-June.