Economy 2 MIN READ

Rouble edges lower as Russian market assesses rate outlook

May 2, 2023By Reuters

The rouble edged lower against the dollar on Tuesday as the Russian market reopened after a long weekend and the dust settled on the central bank’s hawkish pledge to keep rate hikes on the table after it held interest rates on Friday.

At 0715 GMT the rouble was 0.2% weaker against the dollar at 80.38 and had gained 0.2% to trade at 88.50 versus the euro. It firmed 0.3% against the yuan to 11.56.

The rouble strengthened sharply on Friday, ending two weeks of trading in a range of 81-82 against the dollar. It reached a three-week high against the dollar, euro and yuan before paring gains after the central bank held interest rates at 7.5%.

The rouble’s move was “largely the result of tight rhetoric from the Bank of Russia, which has made it clear that it intends to raise the key rate”, said Alor Broker analyst Alexei Antonov.

The next resistance level the rouble could strengthen to is 77.50 to the dollar, Antonov said.

Brent crude oil, a global benchmark for Russia’s main export, was up 0.4% at USD 79.62 a barrel.

Russian stock indexes were lower.

The dollar-denominated RTS index was down 0.2% at 1,031.9 points. The rouble-based MOEX Russian index was down 0.1% at 2,633.3 points.

(Reporting by Alexander Marrow. Editing by David Goodman)

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