Rouble edges higher against dollar as tax payments near

The Russian rouble firmed in early trade on Friday, staying close to the 80 mark against the dollar where it has spent most of this week, supported by the increased supply of foreign currency associated with upcoming month-end tax payments.

The Russian rouble firmed in early trade on Friday, staying close to the 80 mark against the dollar where it has spent most of this week, supported by the increased supply of foreign currency associated with upcoming month-end tax payments. At 0706 GMT, the rouble was 0.3% stronger against the dollar at 79.95 and had gained 0.3% to trade at 85.85 versus the euro. It firmed 0.2% against the yuan to 11.31.

Month-end tax payments, which usually lead exporters to convert foreign currency revenue to meet local liabilities, should provide the rouble with some support. Those taxes are due on May 29. Brent crude oil, a global benchmark for Russia's main export, was up 0.3% at $76.45 a barrel, but had dropped sharply from above $78 in the previous session.

Weaker oil prices and a globally stronger dollar may have a delayed effect on the rouble next week, said First Asset Management analysts, once the tax period has passed. "With this backdrop, the national currency as a minimum may move towards the upper boundary of its narrow range - 81," they said.

Russian stock indexes opened higher. The dollar-denominated RTS index was up 0.6% to 1,046.6 points. The rouble-based MOEX Russian index was 0.3% higher at 2,656.6 points.

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