MOSCOW: The Russian rouble climbed to a one-month high past 96 to the dollar on Friday, supported by high oil prices and the promise of stronger foreign currency supply as exporters prepare for month-end tax payments.
By 0816 GMT, the rouble was 1.2% stronger against the dollar at 95.85, its strongest point since Sept. 22.
It had gained 1.4% to trade at 101.40 versus the euro and firmed 1.3% against the yuan to 13.05.
“The rouble has been showing more pronounced attempts to rise for the past two days,” said Alor Broker’s Alexei Antonov.
“It is quite logical that exporters are increasing FX sales before the peak of the tax period.” Month-end tax payments usually see exporters convert FX revenues to pay local liabilities.
Additionally, this week, President Vladimir Putin’s decree on mandatory FX sales came into force, obliging 43 groups of exporters to repatriate 80% and sell 90% of FX revenues. The prospect of another interest rate rise is also supporting the Russian currency.
Russian rouble firms slightly vs dollar in early trade
The central bank has hiked by 550 basis points since July and economists expect another increase at its next meeting on Oct. 27. Brent crude oil, a global benchmark for Russia’s main export, was up 0.9% at $93.22 a barrel.
Russian stock indexes were mixed. The dollar-denominated RTS index was up 1% to 1,067.2 points, an almost five-month high.
The rouble-based MOEX Russian index was 0.1% lower at 3,250.8 points.
Men’s clothing chain Henderson on Friday became the latest Russian company to announce listing plans, targeting an initial public offering (IPO) on Moscow Exchange next month to tap into space vacated by departing Western firms on Russia’s retail market.
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