Russian rouble hovers near 80 to the dollar
May 27 - The Russian rouble hovered close to 80 to the dollar on Tuesday, supported by the peak of favourable month-end tax payments, low foreign currency demand and high interest rates, with focus turning to the central bank's rate-setting meeting next week.
By 0857 GMT, the rouble was down 0.2% at 79.90 per U.S. dollar, LSEG data based on over-the-counter quotes showed. The Russian currency hit a near two-year high of 79.32 to the dollar last week.
The Russian currency has strengthened by over 40% against the dollar this year, a rise analysts have attributed to the easing of geopolitical tensions - mainly with U.S. President Donald Trump's administration - and the central bank's tight monetary policy, which has reduced demand for foreign currency.
However, the rouble is susceptible to changes in the geopolitical situation, and any recovery in imports could put pressure on the currency, said Alfa Bank Chief Economist Natalia Orlova.
"The current stabilisation of the rouble near the 80 mark to the dollar does not look sustainable," she said.
The government last week said it had extended requirements for major exporters to sell a proportion of their foreign currency earnings until the end of April 2026, buttressing the rouble.
Those restrictions, the Bank of Russia's 21% key interest rate and the peak of month-end tax payments, which usually see exporters convert their foreign currency earnings into roubles to pay local liabilities, are all supporting the rouble.
Economy Minister Maxim Reshetnikov urged the central bank to consider slowing inflation when it sets interest rates next week, warning that the Russian economy is facing "hypothermia" risks.
Against the Chinese yuan, the rouble was unchanged at 11.09 on the Moscow Stock Exchange. Russia's central bank uses yuan for foreign exchange interventions, and it is the most-traded foreign currency in Russia.
Brent crude oil, a global benchmark for Russia's main export, was up 0.1% at $64.77 a barrel.
This article was generated from an automated news agency feed without modifications to text.
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