MOSCOW: The Russian rouble weakened against the US dollar and China’s yuan on Monday after gaining 14% against the dollar since the start of the year and analysts it was less likely to strengthen further.
At 0730 GMT, the rouble was down 0.6% at 97.60 against the dollar, according to data from the over-the-counter market.
The rouble weakened 0.3% to 13.28 against China’s yuan on the Moscow Stock Exchange (MOEX).
The rouble has strengthened by 14% against the dollar so far this year despite new US energy sanctions, on expectations of easing tensions in the longer term between Russia and the United States and less demand for foreign currency from importers.
“Although the domestic market continues to exploit the theme of potential reduction in geopolitical risks, the chances of achieving stronger levels for the rouble exchange rate are more likely decreasing,” said Denis Popov from PSB bank.
The rouble also received support from a 17% increase in sales of the Chinese yuan by the central bank that took effect on February 7.
The regulator intervenes on the forex market to ensure there is enough liquidity.
Russian rouble weakens vs US dollar
One-day dollar/rouble futures, which trade on MOEX and serve as a guide for the over-the-counter exchange rate, were flat at 98.80.
The Russian central bank set the official exchange rate at 97.28.
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