🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Russia c.bank not worried by lateset rouble weakness

Published 04/22/2009, 11:36 AM
Updated 04/22/2009, 11:56 AM

MOSCOW, April 22 (Reuters) - The Russian central bank is not worried by the depreciation of the rouble seen at the start of this week, and has not intervened in the currency market to stop it, its first deputy chairman was quoted as saying on Wednesday. The rouble lost around 2 percent versus a euro-dollar basket in as many days, snapping an eight-week rally and retreating in line with oil prices and stocks. [ID:nLL208083] "That fall is not frightening," Alexei Ulyukayev told Izvestia, according to extracts published on the newspaper's Web site, www.izvestia.ru.

"The rouble turned out to be overbought. Demand for it was too high and it appreciated too quickly. So the smallest news of falling oil prices was enough for speculators to stage a correction," he said.

"We did not come out on the market (on Tuesday)."

The rouble's retreat came after a rally which had marked the end of months of controlled devaluation to adjust the currency to Russia's worst financial crisis in a decade.

The central bank had spent around $200 billion, or a third of Russia's reserves, keeping the depreciation gradual during that time.

It has not sold dollars since the end of January, but had intervened in recent weeks by buying foreign currency to avoid excessive rouble appreciation. Ulyukayev also said the level at which the central bank had last intervened by buying foreign currency was 38 roubles to the basket.

On Wednesday, the rouble recovered some of its losses to close at 38.49 per basket, stronger than Tuesday's three-month low of 38.75.

The full interview is due to be published in the next few days. (Writing by Toni Vorobyova; Editing by Ron Askew)

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.