Russian rouble hovers near two-year high against dollar
The Russian rouble hovered close to a near two-year high against the dollar on Friday, buoyed by limited demand for foreign currency and the prospect of month-end tax payments by major exporters that usually buttress the currency.
By 0950 GMT, the rouble was up 0.2% at 79.50 per U.S. dollar, LSEG data based on over-the-counter quotes showed, after hitting 79.32 to the dollar, its highest level since June 2, 2023, on Thursday.
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.
Against the Chinese yuan, the rouble was down 0.1% at 11.05 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.
The rouble may again test the support level of 11 to the yuan, supported by the stable situation with oil prices, weak foreign currency demand and the approaching peak of monthly tax payments, said Promsvyazbank analyst Bogdan Zvarich.
Monthly tax payments usually see exporters convert their foreign currency earnings into roubles to pay local liabilities.
Brent crude oil, a global benchmark for Russia's main export, was down 0.2% at $64.31 a barrel.
(Reporting by Alexander Marrow; editing by Mark Heinrich)
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