Russian rouble leaps to more than 3-week high near 59 vs dollar

MOSCOW: The rouble surged to more than three-week highs on Thursday against the dollar and euro and Russian stocks edged higher, helped by stronger oil prices and an upcoming tax period that usually boosts rouble demand.

By 1444 GMT, the rouble was 2.4% stronger against the dollar at 59.27, having earlier hit its firmest point since July. 26 of 58.90.

Against the euro, the rouble gained 2.8% to 59.94 , its strongest since late July.

The rouble should continue strengthening on Thursday, SberCIB Investment Research in a note said, pointing to month-end tax payments that usually prompt export-focused companies to convert part of their foreign currency revenue.

“With tax payment deadlines fast approaching, Russian exporters will be ramping up their hard currency sales,” SberCIB said.

Propped up by capital controls, the rouble has become the world’s best-performing currency this year.

Rouble volatility has subsided after wild swings that saw it hit a record low of 121.53 to the dollar on the Moscow Exchange in March, days after Russia sent tens of thousands of troops into Ukraine on Feb. 24, and then rally to a seven-year peak of 50.01 in June.