MOSCOW In early Moscow trade, the Russian rouble remained at its lowest level in more than a week versus the U.S. dollar, as the top of a favourable tax payment period passed and Russian equities reached a two-month high.
Related: As war sparks trade tensions, the WTO tries to make deals on fish and vaccines.
At 07:32 GMT, the ruble was 0.1% lower versus the dollar, trading at 60.55. After a spectacular opening-day movement, the rouble gained 1.1% against the euro to trade at 59.99.
Analysts at Promsvyazbank think that the rouble will slowly fall to the 61 mark against the U.S. dollar because the rouble is not supported by any strong forces.
Last week was the last week of month-end tax payments. This is when Russia’s exporters turn their profits in foreign currency into roubles so they can pay the government.
Promsvyazbank said, “We see that there will be maintenance on Nord Stream this week, which could hurt the value of the national currency.”
Russia has reduced flows through Nord Stream 1 to 20% of capacity and expects to completely shut it down for three days next week, citing turbine maintenance concerns. In response to Western sanctions against Ukraine, the EU says that Russia is using gas as a weapon.
Related: Russia anticipates a $200 billion trade surplus with China by 2024, Interfax reports.
The Russian rouble has been the world’s best-performing currency https://emea1.apps.cp.thomsonreuters.com/Apps/NewsServices/mediaProxy?apiKey=6d416f26-7b24-4f31-beb6-1b5aa0f3fafb&url=http://fingfx.thomsonreuters.com/mediaProxy?apiKey=6d416f26-7
%2Fgfx%2Frngs%2FGLOBAL-CURRENCIES-PERFORMANCE%2F0100301V041%2Findex.html This year, the central bank put in place emergency capital limits to stop a large number of people from selling their stocks.
Its volatility has decreased following the huge swings that saw it hit a record low of 121.53 to the dollar in Moscow trade in March, just after Russia sent tens of thousands of troops to Ukraine. In June, it rebounded to its highest level in seven years, 50.01.
The rouble’s volatility may soon increase again. As of today, the Moscow Exchange will no longer take dollars as security for underwriting transactions and plans to resume early morning trading in September. Additionally, the central bank has relaxed FX limits for banks.
The Russian stock market indices were rising.
Related: Traders in most Asian markets are on the sidelines as they monitor the situation in Ukraine.
The rouble-based MOEX Russian index increased 0.5% to 2,279.3 points, its highest level since June 30. The RTS index denominated in dollars increased 0.3% to 1,186.5 points.
