Forex

Rouble closes to 61 vs. dollar with the upcoming rate decision in focus by Stocksak


© Stocksak. FILE PHOTO – A Russian one rouble currency is shown in front of a monitor that shows St. This illustration was taken June 24, 2022. It shows the Basil’s Cathedral and a tower from Moscow’s Kremlin. REUTERS/Maxim Shemetov/Illustration

MOSCOW (Stocksak), Monday: The Russian ruble stabilized on Monday. This was due to a favorable month end tax period and the prospect for upcoming dividend payments. Investors looked ahead at Friday’s central banking rate decision.

At 0806 GMT, it was unchanged against the dollar at 61.99. It had gained 0.1% against the euro to trade at 60.17 and shed 0.5% to 8.35 against the yuan.

The rouble is supported with a month-end tax period, which usually sees export-oriented businesses convert foreign exchange revenue into roubles to cover domestic tax liabilities.

Dmitry Polevoy from Locko Invest, head of investment, stated that the November role of dividends and tax payments of Russian companies should help the rouble maintain its strengthening trend towards 60 against USD.

The Bank of Russia is now in focus. It has cut its key rate six-times this year following an emergency hike to 20% in February. Russia sent thousands of troops into Ukraine, which caused inflation to spike.

The bank reduced rates to 7.5% last month, but did not provide guidance on how to study the need for further reductions.

The global benchmark for Russia’s main export was down 1.3% to $92.3 a barrel.

Russian stock indexes were increasing.

Promsvyazbank wrote in a note that the market would be supported by the expected start of dividend (payments), from Gazprom MCX: and Tatneft. These payments should provide fuel for the index’s development.

The dollar-denominated RTS was 1.4% higher at 1,064.7, its highest point since Oct. 6. The MOEX Russian index, which is based on roubles, was 1.3% higher at 2,070.3 point.

For Russian equities guide see

Russian treasury bond information

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Stocksak Editorial

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