Russian rouble slides as central bank holds interest rates

The rouble weakened towards 93 to the dollar on Friday, showing limited reaction to a widely expected rate hold at 16% by the central bank and struggling to latch on to support from high oil prices and favourable month-end taxes. By 1109 GMT, the rouble was 0.8% weaker against the dollar at 92.80 and had lost 0.3% to trade at 100.35 versus the euro.

The rouble weakened towards 93 to the dollar on Friday, showing limited reaction to a widely expected rate hold at 16% by the central bank and struggling to latch on to support from high oil prices and favourable month-end taxes.

By 1109 GMT, the rouble was 0.8% weaker against the dollar at 92.80 and had lost 0.3% to trade at 100.35 versus the euro. It had firmed 0.3% against the yuan to 12.76. All 24 analysts polled by Reuters this week forecast the rate hold, with many economists expecting the bank to start easing monetary policy in June. The bank warned that inflationary pressure remained high, with labour market tightness increasing again.

"We do not think the central bank's comments on the rate decision will fundamentally change the balance of forces on the FX market, but trading volatility may increase in the short term," said Alor Broker's Alexei Antonov. Brent crude oil, a global benchmark for Russia's main export, was up 0.1% at $85.91 a barrel. It reached its highest point since early November this week.

Month-end taxes that usually see exporters convert foreign currency revenues to meet local liabilities are also supporting the rouble. Russian stock indexes were lower.

The dollar-denominated RTS index was down 1.1% to 1,111.9 points. The rouble-based MOEX Russian index was 0.3% lower at 3,277.5 points. Shares in oil major Lukoil were 1.5% lower after the company's board recommended a dividend of 498 roubles ($5.44) per share for 2023.

For Russian equities guide see For Russian treasury bonds see 

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