Rouble Slightly Strengthens Amid Foreign Currency Sales

The Russian rouble gained marginally against the dollar and euro on strong foreign currency sales by exporters. Trading shifted to the over-the-counter market due to Western sanctions. The rouble was bolstered by a central bank rate hike, though it weakened against the yuan. Brent crude oil prices dipped over demand concerns in China.

The Russian rouble saw a slight increase against the dollar and the euro on Tuesday, driven by robust sales of foreign currency by exporting companies. By 0730 GMT, the rouble had risen 0.1% to 86.10 against the dollar.

Following Western sanctions on the Moscow Exchange and the National Clearing Centre introduced on July 12, trading in major currencies shifted to the over-the-counter market. The diminished transparency in pricing data was a direct result of these sanctions. Currency sales by Russian exporting companies, which escalate during periods of corporate tax payments in roubles, have been a significant factor in this trade.

The rouble received additional support from the central bank's recent decision to raise its key interest rate by 200 basis points to 18% last Friday. Contrarily, against the yuan, the rouble weakened 0.5% to 11.84, according to OTC market analysis. Meanwhile, the rouble was up 0.1% at 93.44 against the euro.

In parallel, Brent crude oil, a key benchmark for Russia's primary export, fell by 0.3% to $79.54 per barrel due to concerns about demand in China, the world's largest crude importer.