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  • Writer's pictureanalysiswatch

Title: Russian rouble steadies near 60.5 vs dollar in early Moscow trade

Aug 29, 2022 03:50AM ET

By: AnalysisWatch

The Russian ruble held near its lowest level in more than a week against the dollar in early trade in Moscow after the peak of the favorable tax-paying period passed and after Russian stocks hit a two-month high.

The Russian ruble was 0.1 percent weaker against the US dollar at 60.55 at 0732 GMT. After a choppy opening, the ruble was up 1.1% to trade at 59.99 against the euro

Last week saw the end of month-end tax payments, in which Russian exporters usually convert their foreign exchange earnings into rubles to pay the state treasury.

Russia has cut flows through Nord Stream 1 to just 20% of its capacity and plans to shut it down entirely for three days next week, citing maintenance problems with the turbines. The EU accuses it of using the gas as a weapon to fight Western sanctions over Ukraine.

The currency's volatility has fallen after violent swings that led to a record low of 121.53 per dollar in Moscow trading in March, shortly after Russia sent tens of thousands of troops into Ukraine. It then rose to its strongest level in seven years, 50.01, in June.

The ruble's volatility may soon increase again. Starting today, the Moscow Exchange will stop accepting dollars as collateral to secure trades and intends to resume trading early in the morning in September.

The central bank has also eased currency restrictions for banks.

Russian stock indices were rising.

The ruble-based Russian MOEX index rose 0.5% to 2,279.3 points, its highest since June 30. The dollar-denominated RTS index rose 0.3% to 1,186.5 points.

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