Rouble Rises Amid Currency Market Shifts Post-Sanctions

The Russian rouble appreciated against the dollar and yuan, driven by increased sales of the Chinese currency by the finance ministry and central bank. The rouble saw significant gains despite Western sanctions impacting the Moscow Exchange and the National Clearing Centre, shifting major currency trading to the over-the-counter market.

The Russian rouble gained ground against both the dollar and the yuan on Tuesday, spurred by a substantial rise in net daily sales of the Chinese currency conducted by the finance ministry and the central bank.

By 0730 GMT, the rouble had climbed 1.1% to 84.50 against the dollar and 0.4% to 11.80 against the yuan, which is now the most traded foreign currency in Moscow. Following Western sanctions on the Moscow Exchange and National Clearing Centre effective from July 12, currency trading largely shifted to the over-the-counter market, making price data less transparent.

Meanwhile, the rouble slipped 0.1% to 93.04 against the euro. Brent crude oil, a key export for Russia, rose 0.5% to $76.67 a barrel, driven by increasing concern over Middle East tensions and overshadowing fears of a potential U.S. recession. ($1 = 84.8000 roubles)