Aug 17, 2022 07:36AM ET
By:AnalysisWatch
The ruble hit a one-week high against the euro on Wednesday as the Russian currency and stocks swung in volatile trade, hurt by oil prices, which touched a six-month low, but helped by the prospect of upcoming tax payments that tend to boost demand.
The ruble is likely to trade in a range of 60 to 62 against the dollar until exporters become more active in tax payments, Promsvyazbank analysts wrote in a note.
The ruble's volatility has eased recently after wild swings drove it to a record low of 121.53 against the dollar on the Moscow exchange in March, days after Russia sent tens of thousands of troops into Ukraine on Feb. 24, before rebounding in June to a seven-year high of 50.01.
Economie Ministry forecasts seen by Reuters suggest that the Russian economy is coping with sanctions better than initially feared and will contract less than expected.
Restrictions on trading in Russian markets are gradually easing. The Moscow Stock Exchange has allowed investors from "friendly" jurisdictions, or jurisdictions that have not imposed sanctions on Russia, to start trading on the derivatives market after a hiatus of almost six months.
This decision does not apply to the main stock market, but since Monday, the exchange has allowed non-residents from "friendly" countries to trade bonds.
Russian oil, the global benchmark for Russia's main export, hit a six-month low on Wednesday, spurring volatility in Russian stocks.
The dollar-denominated RTS index rose 0.9% to 1,1466.8 points after hitting its best mark since late July. Russia's ruble-based MOEX index was down 0.1% to 2,205.7 points, moving away from the more than five-week high of 2,225.05 points reached in early trading.
Traders and fund managers have abandoned crude markets in recent months, reducing activity to a seven-year low amid the worst global energy crisis in decades, as investors are unwilling to deal with persistently high volatility.