MOSCOW: The Russian rouble firmed on Thursday, continuing to hover in the range of 60 to 61 per dollar, supported by a favourable month-end tax period and with global market activity expected to drop off due to US markets being closed for Thanksgiving.
At 0718 GMT, the rouble was 0.4% stronger against the dollar at 60.47 and had lost 0.3% to trade at 62.92 versus the euro.
It was unchanged against the yuan at 8.44. “Today we do not expect high volatility on the FX market due to the holiday in the US,” said Promsvyazbank analysts in a note.
“We do not see clear drivers for the rouble to move out of the 60-61 range to the dollar.”
The rouble is supported by a month-end tax period in which exporters usually convert foreign exchange revenue into roubles to pay domestic liabilities.
Oil trickled down on Thursday, hovering around two-month lows, as Group of Seven (G7) nations considered setting a proposed price cap on Russian oil at a level higher than current prices, alleviating concerns over tight supply.
The proposed cap of $65-$70 a barrel is likely to have little immediate effect on Moscow’s revenues, as it is broadly in line with what Asian buyers are already paying, five industry sources with direct knowledge of the purchases told Reuters.
Brent crude oil, a global benchmark for Russia’s main export, was down 0.8% at $84.7 a barrel.
Russian stock indexes were mixed.
The dollar-denominated RTS index was up 0.3% to 1,150.5 points.
The rouble-based MOEX Russian index was 0.1% lower at 2,209.2 points.
“Our short-term outlook for the Russian market is unchanged – we expect trading to continue in a sideways formation until clear and tangible catalysts for growth emerge,” said BCS World of Investments.