MOSCOW: The Russian rouble firmed to a 3-1/2 month high against the dollar in early trade on Tuesday, buoyed by exporters’ foreign currency sales, high interest rates and recovering oil prices.
By 0819 GMT, the rouble was 0.2% stronger against the dollar at 91.44, earlier hitting 91.3100, its strongest point since July 31.
It had gained 0.1% to trade at 97.95 versus the euro and firmed 0.3% against the yuan to 12.51 . Month-end tax payments usually prompt exporters to convert foreign exchange revenue to pay domestic liabilities.
The rouble has also been buoyed lately by a presidential decree requiring some exporters to convert a significant portion of FX revenue.
The Russian currency has strengthened from beyond 100 to the dollar since that decree was announced last month.
The central bank’s bigger than expected interest rate increase to 15% in late October has also helped.
The rouble’s ascent since early October has reflected the stable supply of FX since then and shown that the currency can appreciate without tax period support, said Veles Capital’s head of banking and money market analysis Yuri Kravchenko.
“We do not rule out that in these conditions, investors’ appetite for rouble risk may expand and the November tax period will be used for the rouble to strengthen in the 90-91 region to the dollar,” Kravchenko said.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.1% at $82.60 a barrel.
Russian rouble steadies, awaiting fresh drivers
Russian stock indexes were lower.
The dollar-denominated RTS index was down 0.8% to 1,108.9 points.
The rouble-based MOEX Russian index was 0.9% lower at 3,218.3 points.
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