Rouble trims early losses; Dollar steadies

22 Nov 2022

After falling close to a two-week low early Tuesday, Russia’s Rouble stood around 61 to the Dollar at the time of writing.

The Rouble edged down 0.1% against the greenback at 60.90, after declining to 61.1950 previously in the session to its weakest since 10th November.

According to chief analyst, Bogdan Zvarich the Rouble could strengthen towards the 60-level during the session.

“An improved situation on the energy market and an increase in the supply of foreign currency by exporters will facilitate its rise,” Zvarich stated.

The Rouble is bolstered by a month-end tax period during which exporters typically convert foreign exchange revenue into Roubles to pay domestic obligations, Reuters reports.

Against the Euro there was no change for the Rouble at 62.33, whilst against the Chinese Yuan the Russian currency edged down 0.1% at 8.48.

Furthermore, in the previous session, oil prices fell to their lowest level since the beginning of the year before rallying. Subsequently, Brent crude oil rose 0.2% to $87.6 a barrel early on Tuesday.

In addition, Russia’s stock indexes moved up. The Dollar-denominated RTS index rose 0.4% to 1,126.8 points, whilst the Rouble-based MOEX Russian index increased 0.6% to 2,178.3 points.

Elsewhere the Dollar held steady on Tuesday following Monday’s rally. The Euro rose 0.14% to $1.0258 after falling 0.8% the day before, the Pound was up 0.19% to $1.1838, whilst the greenback stood at 141.86 Yen, down 0.18% following a 1.2% increase.

The U.S. Dollar has been weaker in November on forecasts the Fed is moving closer to ending its rate hiking cycle, the Reuters report adds. However, more hawkish statements from policymakers interrupted the trend last week, which also fuelled the gains on Monday.