Rouble eases from near 4-week high vs dollar, firms vs euro

The Russian rouble pulled back from last week’s near four-week high against the dollar on Monday but held near its strongest levels this month, with a tax payment period looming that usually sees exporters convert forex revenues into roubles.

The rouble was down 0.3% to 59.25 against the dollar, having hit 60.1150 earlier on Monday as it fell sharply from Friday’s 57.70 high.

“The backdrop for the rouble this week should be supportive,” Sberbank CIB said in a note, referring to the month-end tax payment period that usually prompts exporters to increase conversion of foreign currency to meet local duties.

But once the tax payment deadline passes, the rouble is seen weakening sharply, with Alor Broker saying it could drop as far as 65 against the dollar.

Against the euro, the rouble gained 0.9% to 59.05 – far from the record low of 132.42 it touched in March days after Moscow began what it calls a “special military operation” in Ukraine on Feb. 24.

The euro weakened against the dollar globally as natural gas prices surged, Sberbank CIB said.

via Reuters