Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Russian rouble steady as exporters convert foreign currency

Published 10/18/2022, 03:56 AM
Updated 10/18/2022, 04:02 AM
© Reuters. FILE PHOTO: The newly designed Russian 100-rouble banknotes are seen at the Goznak printing factory in Moscow, Russia July 6, 2022. Moscow News Agency/Handout via REUTERS
USD/CNY
-

MOSCOW - Russian markets opened steady on Tuesday as month-end tax payments offered support to a rouble buffeted by ever-present investor jitters over the possibility of fresh Western sanctions against Moscow.

The Russian rouble opened 0.4% down against the U.S. dollar, trading at 61.91 at 0730 GMT.

Against the euro, the rouble climbed 0.4% to 60.54 while it was unchanged against the Chinese yuan - an increasing important currency for Moscow as it looks to deepen economic ties with Beijing - at 8.53.

After surging to multi-year highs under strict currency controls this year, the rouble has softened since the start of October in volatile trading attributed to Moscow's military setbacks in Ukraine and the possibility of new sanctions.

"The tax payment period begins today, and therefore demand for roubles is growing ... but risks remain high and many market players are still taking a wait-and-see approach," Sinara Investment Bank analysts said in a research note on Tuesday.

The month-end tax period prompts Russian exporters to convert their foreign currency earnings into roubles to make payments to the Russian treasury, typically boosting the domestic currency.

"The fall of the rouble below 60 against the U.S. (dollar) is not guaranteed, but a return to below 61 is quite possible," said Otkritie Bank research analyst Andrey Kochetkov.

Any upside, however, is likely to be limited by continuing discussions in Brussels over another package of sanctions on Russia, analysts added.

After adding about 3% on Monday, Russian stock markets consolidated gains on Tuesday morning.

The dollar-denominated RTS index was down 0.1% at 1,026.5 points while the rouble-based MOEX Russian index was 0.4% up at 2,020.6 points.

© Reuters. FILE PHOTO: The newly designed Russian 100-rouble banknotes are seen at the Goznak printing factory in Moscow, Russia July 6, 2022. Moscow News Agency/Handout via REUTERS

For Russian equities guide see

For Russian treasury bonds see

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.