MOSCOW: The Russian rouble firmed on Monday, hovering close to a near 16-month high versus the dollar it reached on Friday after a sharper-than-expected rate hike by the central bank, and supported by the continued rally in oil prices.
At 0725 GMT, the rouble was 0.1% stronger against the dollar at 70.24, edging back towards Friday's high of 69.8150, the rouble's strongest mark since June 29, 2020.
The rouble jumped past 70 versus the greenback on Friday after the central bank surprised markets in delivering a more-than-expected 75 basis points rise to 7.5%, increasing the cost of lending for the sixth time this year as it struggles to rein in inflation.
Analysts from Promsvyazbank said they expected the rouble to try to get a foothold below the 70 mark to the dollar on Monday.
Rouble hits 15-month high vs dollar before central bank rate decision
The rouble had gained 0.1% to trade at 81.83 versus the euro , hovering near its strongest point since July 2020.
Yields on the government's 10-year benchmark treasury OFZ bonds, which move inversely to their price, jumped after the rate hike and were hovering at 7.82% on Monday, their highest since March 2020.
Brent crude oil, a global benchmark for Russia's main export, was up 0.9% at $86.29 a barrel, climbing to a multi-year high on tight global supply and providing support for Russian stock indexes.
The dollar-denominated RTS index was up 0.3% to 1,884.2 points. The rouble-based MOEX Russian index was 0.1% higher at 4,200.6 points.
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