MOSCOW: The Russian rouble firmed in early trade on Wednesday, supported by higher oil prices and the beginning of month-end tax payments. The rouble was 0.1 percent stronger against the dollar at 59.65 as of 0745 GMT. It eased 0.1 percent to 70.1 versus the euro after briefly firming to 69.96, its strongest level since late July. Brent crude oil, a global benchmark for Russia’s main export, played on the upside for the rouble by gaining 0.6 percent to $51.12 per barrel. By the end of the month, the rouble is also expected to see support from export-focused companies that convert part of their dollar revenues to meet local liabilities.
By the rouble’s upside is limited by concerns about geopolitical tensions with the West as well as by players’ interest in selling foreign currency when the rouble firms. “International fast money accounts continued to sell spikes” in the dollar-rouble pair, VTB Capital said in a note. “When USDRUB scratched 60.1 overnight, offer from non-residents increased visibly,” it said. Stock indexes climbed higher. The dollar-denominated RTS index was up 0.5 percent at 1,032.4, while the rouble-based MICEX edged 0.2 percent higher to 1,954.5.
