Latest news with #rouble
Reuters
6 days ago
- Business
- Reuters
Russian rouble soars past 78 vs dollar to reach two-year high
May 29 (Reuters) - The Russian rouble strengthened sharply on Thursday, soaring past the 78 mark against the dollar to reach a two-year high, after Moscow proposed a fresh round of peace talks with Kyiv. The rouble has firmed by more than 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. By 0843 GMT, the rouble was up 1.3% at 78.80 per U.S. dollar, LSEG data based on over-the-counter quotes showed, earlier hitting 77.95, its strongest since May 29, 2023. Russia on Wednesday proposed holding the next round of direct talks with Ukraine on June 2 in Istanbul. Kyiv has yet to respond to the proposal. Trump, meanwhile, said he was not yet prepared to impose new sanctions on Russia because he did not want the penalties to scuttle a potential peace deal. That news backdrop, as well as Russia saying it had completed a draft peace memorandum, contributed to the rouble's strength, said Promsvyazbank's Yevgeny Loktyukhov, along with an uptick in oil prices. Brent crude oil , a global benchmark for Russia's main export, was up 1.2% at $65.68 a barrel. The improvement of the geopolitical background and the situation on oil markets should compensate for the traditional month-end foreign currency supply squeeze after tax payments are made, said Loktyukhov. Exporters usually convert their foreign currency earnings into roubles to pay local liabilities at the end of each month, buttressing the Russian currency. Against the Chinese yuan, the rouble was up 1% at 10.90 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.
Zawya
23-05-2025
- Business
- Zawya
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)
Reuters
21-05-2025
- Business
- Reuters
Russian rouble near highest against US dollar since June 2023
MOSCOW, May 21 (Reuters) - The Russian rouble briefly strengthened past the level of 80 to the U.S. dollar on Wednesday before rebounding, but remained close to its highest level since June 2023. By 1000 GMT, the rouble was up 0.4% at 80.30 per U.S. dollar, LSEG data based on over-the-counter quotes showed. The Russian currency has risen by over 40% against the dollar this year. The rouble's exchange rate did not appear to suffer any major impact from new sanctions against Russia, announced by the EU and Britain on May 20, which targeted Russia's "shadow fleet" of oil tankers and financial firms. Analysts have said the rouble's strength this year is linked to the easing of geopolitical tensions and the central bank's tight monetary policy, which has reduced demand for foreign currency. "The strengthening of the rouble is largely due to the prolonged rigidity of monetary policy, which stimulates interest in rouble assets, against the backdrop of a positive geopolitical track," said Denis Popov from PSB bank. Against the Chinese yuan, which Russia's central bank uses for its foreign exchange interventions and is the most-traded foreign currency in Russia, the rouble was up 0.7% at 11.09 per yuan on the Moscow Stock Exchange.
Zawya
21-05-2025
- Business
- Zawya
Russian rouble near highest against US dollar since June 2023
The Russian rouble briefly strengthened past the level of 80 to the U.S. dollar on Wednesday before rebounding, but remained close to its highest level since June 2023. By 1000 GMT, the rouble was up 0.4% at 80.30 per U.S. dollar, LSEG data based on over-the-counter quotes showed. The Russian currency has risen by over 40% against the dollar this year. The rouble's exchange rate did not appear to suffer any major impact from new sanctions against Russia, announced by the EU and Britain on May 20, which targeted Russia's "shadow fleet" of oil tankers and financial firms. Analysts have said the rouble's strength this year is linked to the easing of geopolitical tensions and the central bank's tight monetary policy, which has reduced demand for foreign currency. "The strengthening of the rouble is largely due to the prolonged rigidity of monetary policy, which stimulates interest in rouble assets, against the backdrop of a positive geopolitical track," said Denis Popov from PSB bank. Against the Chinese yuan, which Russia's central bank uses for its foreign exchange interventions and is the most-traded foreign currency in Russia, the rouble was up 0.7% at 11.09 per yuan on the Moscow Stock Exchange. (Reporting by Gleb Bryanski, editing by Ed Osmond)
Reuters
19-05-2025
- Business
- Reuters
Hundred roubles to dollar would be acceptable, says Russian government source
MOSCOW, May 19 (Reuters) - The Russian economy could cope with the rouble sliding back to 100 to the dollar but authorities worry that any correction from current levels could spiral out of control, a senior government source has told Reuters. The rouble has surged about 40% against the dollar to around 80 this year. Analysts widely see it as overvalued and cite a failure of Ukraine peace talks, a possible interest rate cut and further falls in oil prices as likely triggers for a slide. A senior government source, who spoke on condition of anonymity, said there was broad interest in a weaker rouble, perhaps at around 100 to the dollar, as long as the fall was steady and did not go much further. A weaker rouble would help the government to replenish state coffers at a time when a fall in oil revenues - caused by the rouble's strength as well as international sanctions and a fall in global market prices - has forced it to triple this year's deficit forecast. The rouble has risen mainly on expectations of a peaceful settlement in Ukraine and falling imports, as high domestic interest rates mean Russian firms and households can no longer afford to take expensive loans or buy foreign-made goods. But analysts say a negative outcome to the first direct talks between Russia and Ukraine in three years or new Western sanctions could trigger heavy buying of foreign currency. Russian President Vladimir Putin was due to hold a call with U.S. President Donald Trump at 1400 GMT on Monday that had the potential to affect perceptions of the prospects for peace. The source said that a rouble rate as weak as 110-120 to the dollar would benefit the budget by boosting oil revenue in roubles, but that neither the central bank nor the government would welcome the accompanying rise in inflation. The central bank raised its key interest rate to 21% last year, the highest level since the early 2000s. However, with the latest data showing that the economy and inflation are slowing sharply, many economists are predicting a rate cut as early as this summer. The source said that in a small and fragmented market, where China's yuan has become the most traded foreign currency since Western sanctions were imposed on the Moscow Stock Exchange, even small trading volumes could move the dollar rate. The authorities steer the market through mandatory foreign exchange sales for exporting companies, daily forex interventions and capital controls, imposed after Russia sent its army into Ukraine in 2022. The source's view was broadly in line with the government's forecast of an average exchange rate of 94.3 roubles to the dollar this year. Most analysts agree that the rouble is overvalued. In Reuters' latest poll, economists see the rouble at 95 to the dollar in 12 months. The U.S. bank Goldman Sachs sees the rouble back at 100 to the dollar by midsummer. "Currently, the rouble is overvalued. Determining the extent is a complex question," said Dmitry Belousov, head of the TsMAKP think tank, which advises the government, who said a fall in oil prices could trigger a rouble slide. "There are risks that it might overshoot due to purely psychological reasons," Belousov added. Economist Evgeny Kogan said the rouble's real exchange rate, adjusted for inflation, was 12% stronger than in 2019 and 14.9% stronger than the 10-year average. He pointed to a clear failure in peace talks as the biggest potential trigger for a slide. "Russian and international capital have entered Russia hoping that negotiations will advance and sanctions, especially financial ones, will be eased," he said. "If these hopes are not realised, this capital will quickly turn around and leave."
