The Russian rouble strengthened to a one-week high against the dollar on Monday, rising sharply after hitting its weakest mark since mid-August on Friday, as the market turns its attention to a central bank rate decision later this week.
At 0701 GMT, the rouble was 1.1% stronger against the dollar at 96.71 and had gained 0.9% to trade at 103.84 versus the euro. It had firmed 0.3% against the yuan to 13.23.
Kremlin economic aide Maxim Oreshkin said the rouble’s worst days were behind it.
“In the coming months, the market will receive higher volumes of foreign exchange earnings from increased prices for export goods,” Interfax news agency quoted Oreshkin as saying on Monday.
“Which, taking into the account the declining volumes of imports of goods and services, as well as the effects of raising the key rate and tightening macroprudential policy, will create a surplus of foreign currency in the market.”
The rouble plunging to a near 17-month low in August of 101.75 to the dollar led the central bank to make an emergency 350-basis-point rate hike to 12% on Aug. 15.
On Sept. 8, the rouble hit its weakest point since then of 98.6450.
Brent crude oil, a global benchmark for Russia’s main export, was down 0.2% at $90.45 a barrel, but still trading near last week’s more than nine-month high. Russian stock indexes opened higher.
The dollar-denominated RTS index was up 1.4% to 1,026.2 points.
The rouble-based MOEX Russian index was 0.2% higher at 3,149.9 points.
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