Rouble nears four-month high on globally rising risk appetite

MOSCOW: The rouble firmed on Monday, moving towards a four-month high versus the dollar, thanks to a globally increased risk appetite driven by expectations that China and the United States are closing in on a deal to end a trade war.

U.S. President Donald Trump said on Sunday he would delay an increase in U.S. tariffs on Chinese goods thanks to "productive" trade talks and that he and China's President Xi Jinping would meet to seal a deal if progress continued.

"Risk appetite may receive support at the beginning of this week on the back of small but positive changes in trade negotiations between the U.S. and China," analysts at Rosbank said in a note.

At 0729 GMT, the rouble was 0.24 percent stronger against the dollar at 65.23, a level last seen on Jan. 31, as it moved towards its strongest level since Oct. 24 of 65.16.

Against the euro, the rouble gained 0.1 percent to 74.05 .

The rouble also retained support from month-end tax payments. These duties usually prompt export-focused companies to convert their foreign currency revenues to meet local liabilities in the second half of every month.

Though oil prices declined on Monday, they hovered near 2019 highs. Brent crude oil, a global benchmark for Russia's main export, was down 0.24 percent at $66.96 a barrel.

Strong oil prices along with hopes for fruitful U.S.-China talks boosted the Russian stock market. The dollar-denominated RTS index was up 0.7 percent to 1,206.91 points, while the rouble-based MOEX Russian index was 0.4 percent higher at 2,499.07 points.