MOSCOW: The Russian rouble edged up to touch a one-week high against the dollar on Tuesday, with geopolitics in focus during a week of high-profile meetings between Moscow and the West and as investors kept one eye on developments in Kazakhstan. At 0735 GMT, the rouble was up 0.2% against the dollar at 74.86, after earlier hitting 74.79, its strongest point since Jan. 4.
It had gained 0.1% to trade at 84.88 versus the euro .
High commodity prices are supporting the rouble, Promsvyaz bank analysts said in a note, who expect the currency to consolidate near 74.5 versus the greenback.
Russia and the United States gave no sign of narrowing their differences on Ukraine and wider European security in talks in Geneva on Monday, as Moscow repeated demands that Washington says it cannot accept.
As of yet there are no headlines to speak of from the US-Russia meetings, said BCS Global Markets, adding that market moves were likely to be cautious as investors awaited further clarity on the geopolitical front and on the US Federal Reserve’s monetary policy, with Chairman Jerome Powell due to speak later in the day.
Russia has further meetings scheduled this week, with NATO members in Brussels on Wednesday and with the Organisation for Security and Cooperation in Europe in Vienna on Thursday.
The Russia-led Collective Security Treaty Organisation (CSTO) military bloc will start withdrawing its troops from Kazakhstan in two days’ time, Kazakh President Kassym-Jomart Tokayev told parliament, after several days of unrest across the country.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.7% at $81.46 a barrel, supporting Russian stock indexes.
The dollar-denominated RTS index was up 1.4% to 1,587.8 points. The rouble-based MOEX Russian index was 0.9% higher at 3,772.5 points.
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