Russian rouble firms near 60 vs dollar as tax period nears

Russian rouble firms near 60 vs dollar as tax period nears
© Reuters. FILE PHOTO: Russian rouble coin is seen in this illustration taken April 7, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) – The Russian rouble was trading higher on Monday, holding close to last week’s level of 60 against the U.S. dollar as domestic exporters prepared to buy roubles ahead of a new tax period.

The rouble was up 0.45% against the dollar to 60.27 by 0830 GMT. Against the euro, it traded flat at around 62.18.

“The USD/RUB rate is likely to remain in the range of 60-62 roubles this week,” analysts from Bank Saint Petersburg said in a note, adding that the rouble may end the week closer to the 60 mark as it benefits from the new tax period starting tomorrow.

Export-focused firms usually convert foreign exchange revenues into roubles to pay domestic liabilities, which supports the Russian currency.

The rouble has been one of the world’s best-performing currency this year, supported by capital controls and slumping imports after Western governments imposed hefty sanctions on Russia over its invasion of Ukraine.

The price of oil, Russia’s main export, was largely flat, with Brent crude trading at $95.98 a barrel.

Russian stock indexes were higher.

The dollar-denominated RTS index was last up 1% at 1,169.83, while the rouble-based MOEX Russian index climbed 0.92% to 2,237.85.

Source: Reuters