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  • Writer's pictureanalysiswatch

Title: Russian rouble firms to 7-year high past 53 vs dollar in Moscow trade

Jun 22, 2022 03:50AM ET

By: AnalysisWatch

The rouble rose to its strongest level in seven years against the dollar and euro on Wednesday, helped by capital controls, a favourable upcoming fiscal period and Russia's trade surplus.

At 0734 GMT, the ruble was 1.4% higher against the dollar at 53.07, having earlier risen to 52.80, the strongest since June 2015.

Against the euro, it rose 1.6% to 55.36, its strongest level since May 2015.

The rouble, which has become the world's best-performing currency this year, is being driven by Russia's high revenues from commodity exports, a sharp drop in imports and a ban on households withdrawing savings in foreign currency.

Top politicians used the annual Russian Economic Forum in St Petersburg last week to highlight the ruble's recent strength. There are fears that this could weigh on the economy, which is heading for recession amid tough sanctions over what Moscow calls a "special military operation" in Ukraine.

The rouble is also being supported by companies that have to pay taxes early next week. For export-oriented firms, this means they will have to convert dollar and euro revenues into roubles.

Russian stock indices trended mixed, partly due to oil prices, which fell sharply to a more than one-month low.

Brent crude, a global benchmark for Russia's top export, fell 4.4% to $109.6 a barrel.

The dollar-denominated RTS index rose 0.8% to 1,390.4 points, a four-month high, while Russia's rouble-based MOEX index was 0.5% lower at 2,347.6 points.

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