MOSCOW: The Russian rouble rebounded against the dollar on Wednesday after falling for six trading sessions in a row on risks of escalation following Ukraine’s biggest attack on Russian territory since the start of the war.
By 1500 GMT, the rouble was 1.7% stronger at 89.00 to the dollar, according to LSEG data, gaining back some ground after losing 8.5% since the start of Ukraine’s incursion into Russia’s southern Kursk region on Aug. 6.
The rouble briefly touched a 10-month low against the dollar during trading on Tuesday.
Trading in major currencies shifted to the over-the-counter (OTC) market, obscuring pricing data, after Western sanctions on the Moscow Exchange and its clearing agent, the National Clearing Centre, were introduced on June 12.
One-day rouble-dollar futures, which trade on the Moscow Exchange and serve as guidance for the OTC market rates, were also up 1.5% on Wednesday to 88.37.
The central bank’s official exchange rate, which it calculates using OTC data, was set at 90.01 to the dollar for Thursday, recovering almost 3% compared to the rate set for Wednesday.
The weakening of the rouble against the dollar and euro has continued despite support from higher oil prices and increased net daily sales of yuan by the Russian central bank and finance ministry.
Russian exporters, whose sales of foreign currency to make tax payments usually support the rouble, are also largely absent from the market at the moment as the payments are not due until later in August.
Currency traders told Reuters that remaining foreign banks in Russia were the main sellers of the rouble during the past week.
According to an analysis of the OTC market, the rouble strengthened by 0.9% to 11.87 against the Chinese yuan, which has become the most traded foreign currency in Moscow. During Tuesday’s session, the rouble touched its lowest level against the yuan since June 24.
It was up 1.36% at 98.13 against the euro on Wednesday, according to LSEG data, having passed the key mark of 100 roubles per euro in the opposite direction after sinking to 105.28 roubles per euro on Tuesday.
Comments
Comments are closed for this article.