Russian rouble soars to over four-month high against dollar

The Russian rouble on Wednesday soared to its highest levels since early July against the dollar, boosted by continued supply of foreign currency by exporters, high interest rates and relatively strong oil prices.


The rouble firmed 0.9 per cent to 89.80 by 0821 GMT, after earlier hitting 89.57, its strongest level since July 5.

It also gained 0.5 per cent to 97.65 versus the euro and firmed 0.6 per cent against the yuan to 12.40.

The rouble has been buoyed lately by a presidential decree requiring some exporters to convert a significant portion of FX revenue.

The Russian currency has strengthened from beyond 100 to the dollar since the decree was announced last month. The central bank’s bigger-than-expected interest rate increase to 15 per cent in late October has also helped.

Analysts at Bank St Petersburg said the dollar’s depreciation was also favouring the rouble.

The dollar was trading broadly lower as a surprisingly softer U.S. inflation reading bolstered bets that the Federal Reserve has reached the end of its monetary tightening cycle.

Brent crude oil, a global benchmark for Russia’s main export, was steady at $82.50 a barrel.

Russian stock indexes were mixed.

The dollar-denominated RTS index edged up 0.1 per cent to 1,118.2 points. The rouble-based MOEX Russian index was 0.8 per cent lower at 3,188.0 points.

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