Russian rouble hits 3-1/2 month high as oil prices recover

The rouble has also been buoyed lately by a presidential decree requiring some exporters to convert a significant portion of FX revenue. The Russian currency has strengthened from beyond 100 to the dollar since that decree was announced last month.

The Russian rouble on Monday hit its strongest level since Aug. 1, at 91.5250 to the dollar, as oil prices rebounded and market players awaited more support from exporters' foreign currency sales.

That represented a jump of more than 0.7% on the day. The rouble also rose more than 0.5% to peak at 97.9500 to the euro, and firmed a similar amount to 12.533 against the Chinese yuan.

"Today we do not see significant reasons for increased volatility on the FX market," Promsvyazbank's Yevgeny Loktyukhov said in a note. "We believe that sales of foreign currency by exporters will likely remain moderate and their activation can be expected next week, closer to tax payments."

Loktyukhov expected the rouble to trade in a range of 91.50-93.00 to the dollar this week. Month-end tax payments usually prompt exporters to convert foreign exchange revenue to pay domestic liabilities. The rouble has also been buoyed lately by a presidential decree requiring some exporters to convert a significant portion of FX revenue.

The Russian currency has strengthened from beyond 100 to the dollar since that decree was announced last month. The central bank's bigger than expected interest rate increase to 15% in late October has also helped. Brent crude oil, a global benchmark for Russia's main export, was up 1% at $82.22 a barrel.

Russian stock indexes were also higher. The dollar-denominated RTS index rose 0.9% to 1,117.43 points while the rouble-based MOEX Russian index gained 0.19% to 3,248.3 points.

Russian gold miner Uzhuralzoloto (UGC) on Monday set the price range for its Moscow Exchange initial public offering (IPO), the latest in a series of small capital increases by Russian companies as they adjust to life without Western capital.