Russian rouble eases as favourable tax period passes

The rouble weakened on Tuesday after the passing of a favourable month-end tax period, but the Russian currency remained clear of the 90 threshold to the dollar thanks to support from high oil prices and state foreign currency sales.

The rouble weakened on Tuesday after the passing of a favourable month-end tax period, but the Russian currency remained clear of the 90 threshold to the dollar thanks to support from high oil prices and state foreign currency sales. At 0740 GMT, the rouble was 0.4% weaker against the dollar at 89.33 and had lost 0.6% to trade at 96.69 versus the euro. It had shed 0.5% against the yuan to 12.41.

Month-end tax payments, which require exporters to convert foreign currency revenues into roubles and usually buttress the Russian currency later in the month, were due on Monday. The rouble does still have strong support from state FX sales at the equivalent of 16.7 billion roubles ($187 million) a day.

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 unchanged at $82.43 a barrel.

Russian stock indexes were broadly higher. The dollar-denominated RTS index was marginally up to 1,125.6 points. The rouble-based MOEX Russian index was 0.5% higher at 3,191.5 points.

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($1 = 89.2900 roubles)