Rouble's Resilience Amid Economic Changes

The Russian rouble remains steady at nearly 80 to the dollar, bolstered by month-end tax payments, high interest rates, and exporters' currency sales. Analysts note the rouble's current strength, while cautioning about potential risks from geopolitical shifts and import recoveries. The central bank's monetary policies remain pivotal.

The Russian rouble maintained its position close to 80 against the dollar on Tuesday, buoyed by month-end tax settlements and heightened interest rates, as market attention shifts to the central bank's upcoming rate decision. By 8:57 GMT, the rouble had slipped slightly by 0.2%, trading at 79.90 per U.S. dollar, according to LSEG data.

Having strengthened by over 40% against the dollar this year, the rouble's rise is attributed to the easing of U.S.-Russia geopolitical tensions and the central bank's vigilant monetary policy. However, Alf Bank's Chief Economist Natalia Orlova warns of vulnerabilities linked to geopolitical developments and import surges, which could pressure the currency.

The government recently extended mandates for major exporters to convert foreign currency earnings until April 2026, supporting the rouble further. Economy Minister Maxim Reshetnikov has flagged potential 'hypothermia' risks for the economy, advocating for the central bank's careful approach to inflation and interest rate moderation in the upcoming meeting.

(With inputs from agencies.)