Russian rouble steadies near 92 vs dollar ahead of rate decision this week

The Russian rouble steadied near 92 to the dollar on Tuesday, holding on to the strong gains made in the previous session, supported by high oil prices and as investors hedged bets ahead of a rate decision later this week.

The Russian rouble steadied near 92 to the dollar on Tuesday, holding on to the strong gains made in the previous session, supported by high oil prices and as investors hedged bets ahead of a rate decision later this week. The Russian currency had weakened throughout last week, but strengthened sharply on Monday, the day after President Vladimir Putin scored a record post-Soviet landslide victory in Russia's election, cementing an already tight grip on power.

At 0747 GMT, the rouble was steady against the dollar at 91.95 and had gained 0.1% to trade at 99.91 versus the euro. It had shed 0.1% against the yuan to 12.74. "Until the middle of next week, the rouble will be supported by the approaching peak of the tax period, but, perhaps, Friday's rhetoric from the central bank will be more important for the domestic currency," said Alexei Antonov of Alor Broker.

All 24 analysts polled by Reuters this week anticipate a rate hold at 16% on Friday, with many expecting the bank to start easing borrowing costs in June. The rouble's high volatility, significant government spending and labour shortages are all risk factors that could keep inflation high, said Alexander Fetisov of Rosselkhozbank.

"We assume that it will be more reasonable for the regulator to 'wait out' the peak of inflation and begin easing no earlier than the end of the second or beginning of the third quarter," Fetisov said. Month-end tax payments, which usually see exporters convert foreign currency revenues to pay local liabilities, should also lend the rouble support.

Brent crude oil, a global benchmark for Russia's main export, was down 0.1% at $86.78 a barrel. It reached its highest level since earlier November in the previous session. Russian stock indexes were higher.

The dollar-denominated RTS index was up 0.1% to 1,130.2 points. The rouble-based MOEX Russian index was 0.1% higher at 3,298.5 points.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)