MOSCOW (Reuters) – The rouble edged lower against the dollar, euro and yuan on Tuesday, because the Russian currency began trading without the support of a favourable month-end tax period and investors awaited the U.S. Federal Reserve’s policy meeting.
The Fed is all but certain to lift rates of interest by 75 basis points on Wednesday, but investors shall be watchful for any signals that the pace of rate of interest hikes may decelerate in the long run.
At 0723 GMT, the rouble was 0.1% weaker against the dollar at 61.53 and had lost 0.3% to trade at 61.05 versus the euro. It had shed 0.3% against the yuan to eight.41.
The rouble has now lost the support of month-end tax payments, that typically see export-focused firms convert foreign currency revenues to pay local liabilities.
The rouble may try to weaken past 62 against the greenback, Banki.ru chief analyst Bogdan Zvarich said.
“In the midst of trading we expect pressure on the national currency to stay, which shall be facilitated by the lower supply of foreign currency from exporters as a result of the passing of the height of tax payments,” Zvarich added.
Brent crude oil, a world benchmark for Russia’s important export, was up 1.4% at $94.1 a barrel.
Russian stock indexes were climbing, trading at their highest in over a month.
The dollar-denominated RTS index was up 0.5% to 1,116.7 points, earlier touching its strongest point since Sept. 30. The rouble-based MOEX Russian index was 0.7% higher at 2,182.8 points, earlier reaching its highest mark since Sept. 23.
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(Reporting by Alexander Marrow; Editinjg by Andrew Heavens)
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