Rouble hits over 1-month high ahead of Putin press conference

Updated 24 Dec, 2021

MOSCOW: The rouble firmed to its highest in more than a month against the dollar on Thursday, ahead of President Vladimir Putin's annual news conference amid lingering concerns about a standoff between Russia and the West over Ukraine's NATO aspirations.

By 0901 GMT, the rouble was up 0.6% against the dollar at 73.29, earlier touching 73.1850, its strongest mark since Nov. 22.

It gained 0.8% to trade at 82.89 versus the euro , a more than one-week high.

Russia has moved tens of thousands of troops near its border with Ukraine but rejected Ukrainian and U.S. charges that it may invade as early as next month, while saying it will be forced to act if Western powers do not stop military cooperation with its neighbours.

"On the geopolitical front, the West and Russia are standing their ground, even ratcheting up the war of words; however, headlines brought a ray of hope - the U.S. has signalled a willingness to start talks with Russia next month," BCS Global Markets said in a note.

Risk appetite has also improved, with investors more optimistic over the global economic recovery after data on Wednesday showed a better-than-expected uptick in U.S. consumer confidence and as some concerns over the severity of the Omicron coronavirus variant eased.

The rouble may test the level of 73 versus the greenback on Thursday, said Promsvyazbank analysts. A tax period that usually prompts export-focused companies to convert their forex revenues into roubles to meet local liabilities is also supporting the currency, they said.

Brent crude oil, a global benchmark for Russia's main export, was down 0.3% at $75.10 a barrel after earlier clipping a 10-day high.

Russian stock indexes were mixed.

The dollar-denominated RTS index was unchanged at 1,602.0 points. The rouble-based MOEX Russian index was 0.5% lower at 3,726.7 points.

Read Comments