MOSCOW: The Russian rouble hit its highest in five days on Friday, supported by domestic month-end tax payments and higher global oil prices. The rouble gained 0.4 percent to 57.66 versus the dollar as of 0715 GMT, its strongest since Monday. Against the euro, the rouble firmed 0.1 percent to 69.08 .
The Russian currency usually sees support from month-end taxes that prompt export-focused companies to convert part of their dollar revenues to meet local liabilities. Companies started preparing for tax payments earlier this week as they will need to pay up to 325 billion roubles ($5.64 billion) in mineral extraction taxes next Monday, according to analysts polled by Reuters. VTB Capital said in a note that the rouble outperformed emerging market peers overnight largely thanks to “hard currency selling in the corporate sector” ahead of the tax payments. Oil prices also supported the rouble as they climbed higher ahead of an OPEC meeting that is expected to shed light on whether the global oil production cut would be extended. Brent crude oil, a global benchmark for Russia’s main export, was up 0.1 percent at $56.5 a barrel. Russian share indexes traded lower before the weekend. The dollar-denominated RTS index was little changed at 1,120 points, while the rouble-based MICEX declined 0.5 percent to 2,050.8.
