Rouble Falters Amid Corporate Tax Day and Accelerated Currency Sales

The Russian rouble weakened against the dollar on Monday during the corporate tax payment day. Reduced foreign currency sales by exporters impacted the rouble, which was also affected by Western sanctions on the Moscow Exchange. Despite the central bank's interest rate hike, the rouble declined against the dollar, yuan, and euro.

The Russian rouble weakened against the dollar on Monday, coinciding with the corporate tax payment day. The rouble lost support from accelerated foreign currency sales last week by exporting companies, which had previously accumulated roubles for tax payments. As of 0730 GMT, the rouble was trading at 86.40 against the dollar, down 0.3%.

The trading of major currencies shifted to the over-the-counter (OTC) market, increasingly obscuring pricing data. This shift followed the introduction of Western sanctions on July 12 targeting the Moscow Exchange and its clearing agent, the National Clearing Centre. The rouble received some support from the central bank's decision to raise its key interest rate by 200 basis points to 18% last Friday.

Against the yuan, which had already become the most traded foreign currency in Moscow before the latest sanctions, the rouble shed 0.1%, trading at 11.56. Additionally, it was down 0.3% to 93.72 against the euro. Elsewhere, Brent crude oil, a global benchmark for Russia's main export, rose by 0.1% to $81.23 a barrel amid fears of an escalating conflict in the Middle East.

(With inputs from agencies.)