Economy

The Russian ruble rose to a one-week high against the dollar as the tax period began

The Russian ruble rose to a one-week high against the dollar as the tax period began

MOSCOW (Reuters) – The ruble rose to a one-week high against the dollar on Monday, boosted by the start of a favorable month-end tax period, as oil prices fell and the specter of geopolitical risks continued to loom in Russian markets. .

By 0848 GMT, the ruble was 1.1% stronger against the dollar at 61.41, posting its strongest point since October 10. It rose 0.6% to trade at 60.35 against the euro and rose 1.6% against the yuan to 8.47, nearly a two-week high.

“The tax period, which has officially begun, will gradually gain momentum, and with it the volume of foreign exchange sales by exporters for tax purposes,” said Dmitry Polevoy, chief investment officer at Locko Invest.

Export-focused companies usually convert foreign exchange earnings into rubles to pay domestic tax obligations, which supports the Russian currency.

The ruble is the world’s best performing currency this year, buoyed by capital controls and a decline in imports after Western governments imposed heavy sanctions on Russia for its actions in Ukraine, while dozens of foreign companies halted operations in the country.

a global benchmark for major Russian exports, fell 0.1% to $91.60 a barrel.

“IMOEX remains in a narrow range, lacking any positive drivers,” BCS Global Markets said. “On the other hand, the RTS is supposed to increase the appreciation of the ruble – which is typical in the month-end tax period.”

Russian stock indices were higher, cutting their highest points since October 7.

The dollar-denominated RTS index rose 2.3% to 1013.3 points. The Russian ruble-based MOEX index rose 1.3 percent to 1977.1 points.

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