👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Rouble steadies, locking in gains made after Putin ordered capital controls

Published 10/13/2023, 04:03 AM
Updated 10/13/2023, 04:05 AM
© Reuters. FILE PHOTO: An employee holds Russian 1000-rouble banknotes in a bank office in Moscow, Russia, in this illustration picture taken October 9, 2023. REUTERS/Maxim Shemetov/Illustration/File photo
USD/RUB
-
LCO
-
CL
-
IRTS
-

MOSCOW (Reuters) - The Russian rouble steadied near 97.5 to the dollar on Friday, locking in the hefty gains made in the previous session after President Vladimir Putin ordered the mandatory sale of foreign currency revenues for some exporters to support the currency.

The government said late on Wednesday that Putin had signed a decree reintroducing capital controls for an undisclosed list of 43 exporting firms, but the market is looking for more detail, such as the percentage of revenues affected and the start date.

At 0750 GMT, the rouble was 0.1% weaker against the dollar at 97.51, having climbed over 3% to a more than two-week high of 96.4550 in the previous session.

It had lost 0.1% to trade at 102.89 versus the euro and shed 0.3% against the yuan to 13.33.

The Kremlin on Thursday said it would not disclose the list of companies affected by the controls.

"Estimating a 'fair' value of the rouble without these parameters is impossible," said Alexei Antonov of Alor Broker.

"We'll risk suggesting that in the short term the rouble has good chances of strengthening even below 95 roubles per dollar, however in the long-term, the Russian currency still looks weak due to large budget expenditures and the huge need for imports."

A stronger rouble could ease pressure on the central bank, which is widely expected to raise interest rates at its next meeting on Oct. 27.

But reimposing capital controls was not wholly supported by the central bank, which has preferred tackling the rouble's weakness through monetary policy. Similar controls were implemented soon after Russia despatched troops to Ukraine in February 2022.

Brent crude oil, a global benchmark for Russia's main export, was up 2.2% at $87.85 a barrel.

© Reuters. FILE PHOTO: An employee holds Russian 1000-rouble banknotes in a bank office in Moscow, Russia, in this illustration picture taken October 9, 2023. REUTERS/Maxim Shemetov/Illustration/File photo

Russian stock indexes were higher.

The dollar-denominated RTS index was up 0.4% to 1,030.4 points. The rouble-based MOEX Russian index was 0.5% higher at 3,189.7 points.

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.