MOSCOW: The Russian rouble strengthened slightly against the US dollar on Thursday ahead of President Vladimir Putin’s live annual news conference and nationwide phone-in, where he is likely to address economic issues such as high inflation.
By 0800 GMT, the rouble was up by 1.0% at 103.60 against the dollar, according to over-the-counter market data from banks.
The rouble weakened by 0.18% to 14.20 against China’s yuan in trading on the Moscow Stock Exchange.
Russia’s inflation has reached 9.14% so far this year, well above the central bank’s annual estimate of 8.5%, new data showed on Dec. 18, adding to the arguments in favour of another aggressive key interest rate hike by the central bank.
The rouble’s weakness and volatility in the aftermath of new US financial sanctions, imposed on Nov. 22, are further fuelling inflation with households inflationary expectations running at this year’s high.
The rouble fell by as much as 15% against the dollar in November after US sanctions hit Russia’s third-largest lender Gazprombank, which handled payments for Russian energy.
The sanctions prompted panic buying of foreign currency.
The rouble has since regained some of the lost ground and stabilised above 100 to the dollar, seen by the market as a new equilibrium level, at which the Russian currency could remain for some time provided there are no further external shocks.
Russian rouble steadies above 100 to the US dollar
One-day rouble/dollar futures, which trade on the Moscow Stock Exchange and are a guide for the over-the-counter exchange rate, were flat at 104.6.
The Russian central bank set an official exchange rate at 102.78 to the dollar.
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