The rouble weakened past 91 against the dollar on Friday to a more than one-week low as a favourable tax period drew to a close, with the Russian currency unable to eke out any significant gains from high oil prices.
By 1215 GMT, the rouble was 0.6% weaker against the dollar at 91.10, earlier hitting its weakest point since July 20.
It had lost 0.4% to trade at 100.37 versus the euro and shed 0.5% against the yuan to 12.71.
Russian rouble steadies near 90 vs dollar
The rouble has been weakening this year as exports fall and imports recover. It hit a more than 15-month low in early July as pressure increased sharply following an abortive armed mutiny by the Wagner mercenary group in late June.
Last week’s larger-than-expected, 100-basis-point interest rate hike by the Bank of Russia to 8.5% had limited immediate impact on the currency, but higher rates should lend the rouble support as they make investment in Russian assets more attractive.
Support from taxes due on Friday, where exporters usually convert foreign currency revenue to meet local liabilities, is set to wane.
Brent crude oil, a global benchmark for Russia’s main export, was down 0.2% at $84.11 a barrel. It hit a more than three-month high in the previous session.
Russian stock indexes were lower.
The dollar-denominated RTS index was down 0.3% to 1,036.3 points. The rouble-based MOEX Russian index was 0.3% higher at 2,996.8 points, earlier passing the 3,000-point threshold for the first time since Russia invaded Ukraine in February 2022.
Some large companies announcing the resumption of dividend payments in June and July has supported the index, as have some corporate earnings, but it remains well below the record highs above 4,000 points hit in late 2021, stung by geopolitics.
Comments
Comments are closed.