Rouble Gains Amid Oil Price Surge and Dollar Weakness

The Russian rouble gained ground against the dollar on Thursday, bolstered by rising oil prices and a weakening dollar. As of 1030 GMT, the rouble had increased by 1.0%, trading at 87.60 to the dollar.

Sanctions on the Moscow Exchange and its clearing agent, the National Clearing Centre, have resulted in varying prices and spreads as trading moved to the over-the-counter (OTC) market on June 14. This shift has made access to reliable pricing for the Russian currency difficult. The rouble declined by 0.1% to 12.01 against the yuan, which had already become the most-traded foreign currency in Moscow prior to the latest sanctions, as per an OTC market analysis.

The rouble also rose by 0.3% to 96.50 against the euro. Brent crude oil, a key global benchmark for Russia’s primary export, surged by 0.7% to $85.75 a barrel, driven by a significant decline in U.S. crude stocks last week.

Market participants anticipate major Russian exporting companies will start converting their foreign currency earnings into roubles ahead of monthly corporate tax payments due on July 29. This conversion process is expected to further support the rouble.

(With inputs from agencies.)