The Russian rouble held steady against the dollar at around 90, supported by strong oil prices and an imminent, advantageous tax period before the finance ministry’s two OFZ bond auctions.
Russian rouble near 90 vs dollar: The rouble was trading at 99.81 against the euro and was unchanged against the dollar at 90.16 at 07:38 GMT.
In terms of the yuan, it had strengthened 0.3% to 12.60. Russia’s primary export, Brent crude oil, which serves as a benchmark globally, was down 0.1% at $83.55 per barrel.
In the previous session, it reached its highest position in more than three months.
The rouble has been losing strength this year as exports decline and imports increase, but in early July it reached a more than 15-month low as pressure grew significantly in the wake of an unsuccessful armed uprising by the Wagner mercenary organisation in late June.
The Bank of Russia raised interest rates by 100 basis points, or a larger-than-anticipated amount, to 8.5% last week, which had a muted immediate effect on the rouble but should strengthen it in the long run as higher rates make it more profitable to invest in Russian assets.
Taxes due on July 28 may support the rouble as exporters convert foreign currency profits to cover domestic commitments.
“Rouble’s Performance on Energy Markets and Russian Stock Indices: Insights and Analysis”
According to Banki.ru Chief Analyst Bogdan Zvarich, “The rouble has not yet managed to fully capitalise on the improved situation on energy markets.” He anticipates that taxes and oil prices will offer the rouble a chance to increase before the end of the week.
After reaching months-long highs, Russian stock indices were down.
The MOEX Russian index, which is based on the rouble, was down 0.2% on the day at 2,970.1 points after peaking at 2,982.47 points in early trade, its highest level since prior to Russia’s invasion of Ukraine in February 2022.
The index has received help from some significant corporations declaring the start of dividend payments in June and July, but geopolitics has still caused it to remain far behind the record highs above 4,000 points reached in late 2021.
The dollar-denominated RTS index, which had previously reached a high over one month, was down 0.1% to 1,037.6 points.