MOSCOW: The Russian rouble strengthened against the US dollar and China’s yuan on Friday, supported by corporate tax payments at the end of the month and certainty about the new state budget and new tax increases.
The rouble strengthened 0.5 percent to 83.50 against the dollar, according to LSEG data based on over-the-counter quotes, by 0930 GMT. It was up 0.3 percent at 11.67 against China’s yuan, the most traded foreign currency in Russia.
“If there is no deterioration in geopolitical expectations, the rouble will be supported by rising oil prices and an increased supply of foreign currency from exporters,” said PSB bank’s Bogdan Zvarich.
Expectations of the central bank slowing or pausing the easing cycle as a result of the new planned value-added tax hikes, which will accelerate inflation at the start of 2026, are supporting the rouble.
The average rouble rate is now seen at 92.2 to the dollar in 2026 in the new set of the government’s macroeconomic forecasts, released this week, which is about 8 percent stronger than in the previous set.
Comments
Comments are closed for this article.