Russian rouble steadies vs dollar as end of volatile week approaches
The rouble traded near 84 against the dollar on Friday, steadying somewhat after a volatile week that saw the Russian currency hit a more than 14-month low, under pressure from geopolitical risks and limited foreign currency supply.
- Country:
- Russian Federation
The rouble traded near 84 against the dollar on Friday, steadying somewhat after a volatile week that saw the Russian currency hit a more than 14-month low, under pressure from geopolitical risks and limited foreign currency supply. At 0741 GMT, the rouble was 0.2 weaker against the dollar at 83.90, not far from its weakest point since early April 2022 of 85.03, hit on Wednesday.
It had lost 0.3% to trade at 91.85 versus the euro and shed 0.2% against the yuan to 11.75 . "The Russian currency is on the edge between a return to the devaluation trend and the development of corrective growth," Veles Capital said in a note.
Russia's deteriorating foreign trade figures, limited foreign currency supply from exporters and strong FX demand domestically are all weighing on the rouble. The Russian currency has become more thinly traded, making it susceptible to sharp swings since Moscow was targeted by Western sanctions over its military campaign in Ukraine, with fewer foreign investors able to access Russian markets.
A trader at a major Russian bank said this week that the market was waiting for the rouble to strengthen once exporters, for whom a weak rouble is beneficial, begin to convert foreign exchange revenues to pay local taxes later in the month. Lower export earnings have hampered the rouble this year, especially as imports, which slumped in 2022, recover.
Brent crude oil, a global benchmark for Russia's main export, was down 0.1% at $75.60 a barrel. Russian stock indexes were lower.
The rouble-based MOEX Russian index renewing a more than 14-month high in early trade before easing 0.2% to 2,793.9 points. The dollar-denominated RTS index was down 0.4% to 1,049.7 points.
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