The Russian rouble was up slightly against the US dollar on Tuesday, helped by rising oil prices, but weakened against the euro. At 0745 GMT, the rouble was up 0.10% against the dollar at 60.1025, and down 0.28% at 60.3125 versus the euro.
It was almost unchanged versus the yuan at 8.556.
“We note that the dynamics of trading, according to our estimates, despite the beginning of the key week before the payment of taxes by exporters, may partly be associated with a shortage of foreign exchange liquidity for a number of players,” said Egor Zhilnikov, an analyst at Russia’s Promsvyazbank.
Russian rouble firms to over 3-week high on eve of rate decision
Zhilnikov said that after the Russian central bank’s rate cut last week, the dollar overnight basis became negative, “which means that the exchange of dollars for roubles began to cost banks more than direct loans in roubles”.
Russia’s central bank lowered its key interest rate by 50 basis points to 7.5% on Friday. The rouble has been the world’s best-performing currency this year, buoyed by emergency capital controls rolled out by the central bank in a bid to halt a mass sell-off.
The rouble is set to gain support from a month-end tax period that usually sees Russia’s exporters convert their foreign currency earnings into roubles to pay to the treasury, the peak of which falls on Sept. 26.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.39% at $92.36 a barrel. Russian stock indexes were down.
The dollar-denominated RTS index was down 1.26% to 1256.610 points.
The rouble-based MOEX Russian index was 1.4% lower at 2396.12 points.
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