MOSCOW: The rouble rose sharply to trade near 90 to the dollar on Tuesday, hitting its strongest level since late December, supported by the central bank’s renewed foreign currency sales as trading resumed in full after Russia’s long January holidays.
By 1040 GMT, the rouble gained 1.2% against the dollar at 90.03, its strongest since Dec. 29. It had gained 1.4% to trade at 98.59 versus the euro and firmed 1.3% against the yuan to 12.54.
“It is worth expecting an increase in foreign currency inflows from exporters, who continued shipping their products to external markets during the New Year holidays, but sold little foreign currency due to the days off and low market liquidity,” said Alor Broker’s Alexei Antonov.
Russian rouble hovers near 91 to dollar in thin holiday trade
Brent crude oil, a global benchmark for Russia’s main export, was up 1.9% at $77.57 a barrel.
Since October and the rouble’s most recent slide to 100 against the dollar, a presidential decree forcing exporters to convert some foreign currency revenue has supported the Russian currency, as have elevated interest rates, which were raised to 16% last month.
The rouble may also be boosted by central bank FX interventions, which will be carried out using a slightly adjusted formula this year and will include those deferred in 2023 as the rouble weakened.
From Jan. 9-12, the central bank will sell foreign currency worth 900 million roubles ($9.99 million) each day, which may support the rouble rate, said Alfa Investments analysts. The rouble is seen in the 90-95 range to the dollar on average in 2024, they added.
Russian stock indexes were mixed.
The dollar-denominated RTS index was up 1.3% to 1,103.4 points, its strongest since Dec. 1. The rouble-based MOEX Russian index was 0.2% lower at 3,151.9 points.
Comments