MOSCOW, Feb 1 — The Russian rouble hovered near 90 to the dollar today after hitting a more than two-week low in early trade, still buttressed by state forex sales, but having lost the support of favourable month-end tax payments.
At 0741 GMT (3.41pm Malaysian time), the rouble was unchanged against the dollar at 90.01, earlier falling to 90.2450, its weakest point since January 16.
It had gained 0.5 per cent to trade at 97.06 versus the euro and was flat against the yuan at 12.50 .
“The relative weakness of the Russian currency in recent days is caused by the end of the tax period,” said Alor Broker’s Alexei Antonov in a note. “We do not expect further rouble devaluation.”
Month-end tax payments usually support the rouble as exporters convert their foreign currency revenues to pay local liabilities. State FX sales have also been propping up the rouble.
The currency could also gain a boost should capital controls requiring exporters to convert foreign currency revenue be extended beyond April 30. Market players are on the lookout for news after the government’s proposal for an extension was swiftly opposed by the central bank last week.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.1 per cent at $80.61 a barrel.
Russian stock indexes were higher.
The dollar-denominated RTS index was up 0.5 per cent to 1,130.9 points. The rouble-based MOEX Russian index was 0.6 per cent higher at 3,231.8 points. — Reuters