The Russian rouble weakened on Tuesday, pulling back slightly from Monday’s two-week high against the dollar, but remaining in a relatively narrow band as oil prices recovered ground and the peak of a month-end tax period approached.
At 0750 GMT, the rouble was 0.2% weaker against the dollar at 81.50 and had lost 0.3% to trade at 89.96 versus the euro.
It had firmed 0.1% against the yuan to 11.76.
The rouble is set to see support as this month’s relatively high oil prices boost export revenue. “More serious growth of the rouble may start after the May holidays, if they pass calmly,” said Alexei Antonov at Alor Broker in a note.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.3% at $82.99 a barrel, recovering from near $80 in the previous session. The rouble is also expected to gain support from month-end tax payments that usually lead exporters to convert foreign currency revenue to meet local liabilities.
Russian rouble firms with tax revenue, central bank decision in sight
Those taxes are due on April 28. However, talk of a near-total ban on exports to Russia by Group of Seven (G7) countries is putting negative pressure on the Russian market, analysts have said.
The market is also looking ahead to Friday’s interest rate decision from Russia’s central bank.
Analysts polled by Reuters expect a hold at 7.5%, with the risk of inflationary pressure picking up limiting room for manoeuvre on any monetary easing.
Russian stock indexes were lower.
The dollar-denominated RTS index was down 0.5% to 1,016.0 points.
The rouble-based MOEX Russian index was 0.3% lower at 2,628.0 points.
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