Russian rouble climbs to one-month high past 96 vs dollar
Business
By 0816 GMT, the rouble was 1.2pc stronger against the dollar at 95.85
MOSCOW (Reuters) - The Russian rouble climbed to a one-month high past 96 to the dollar on Friday, supported by high oil prices and the promise of stronger foreign currency supply as exporters prepare for month-end tax payments.
By 0816 GMT, the rouble was 1.2 per cent stronger against the dollar at 95.85, its strongest point since Sept. 22.
It had gained 1.4pc to trade at 101.40 versus the euro and firmed 1.3pc against the yuan to 13.05.
“The rouble has been showing more pronounced attempts to rise for the past two days,” said Alor Broker’s Alexei Antonov.
“It is quite logical that exporters are increasing FX sales before the peak of the tax period.” Month-end tax payments usually see exporters convert FX revenues to pay local liabilities.
Additionally, this week, President Vladimir Putin’s decree on mandatory FX sales came into force, obliging 43 groups of exporters to repatriate 80pc and sell 90pc of FX revenues. The prospect of another interest rate rise is also supporting the Russian currency.
The central bank has hiked by 550 basis points since July and economists expect another increase at its next meeting on Oct. 27. Brent crude oil, a global benchmark for Russia’s main export, was up 0.9 at $93.22 a barrel.
Russian stock indexes were mixed. The dollar-denominated RTS index was up 1 to 1,067.2 points, an almost five-month high.
The rouble-based MOEX Russian index was 0.1pc lower at 3,250.8 points.
Men’s clothing chain Henderson on Friday became the latest Russian company to announce listing plans, targeting an initial public offering (IPO) on Moscow Exchange next month to tap into space vacated by departing Western firms on Russia’s retail market.
