MOSCOW: The Russian rouble firmed slightly on Thursday, hovering near two-week peaks it climbed on the back of demand for Russian OFZ government bonds, while the MOEX stock index headed back towards all-time highs amid stronger oil prices.
The rouble was 0.1% stronger at 64.58 versus the U.S. dollar as of 0756 GMT, trading near 64.48, its strongest level since late April that it touched on Wednesday.
The currency got a boost as investors snapped up OFZ bonds on Wednesday, helping the finance ministry sell a record bulk.
Describing OFZ auctions as "exceptionally successful", Nordea Bank said in a note that the rouble retains chances to firm in the second half of May and in June ahead of a possible rate cut by the central bank next month.
Investors tend to buy government bonds when they expect the central bank to lower rates as cuts drive yields of bonds lower and, simultaneously, steer their prices up.
The central bank, which held its key rate at 7.75% last month, signalled it could consider cutting rates as early as June given that inflation has peaked.
Versus the euro, the rouble gained 0.1% to 72.38 .
Brent crude oil, a global benchmark for Russia's main export, was up 0.4% at $72.05 a barrel, lending support to Russian assets.
The dollar-denominated RTS index rose 0.7% to 1,255.8 points. The rouble-based MOEX Russian index was 0.8% higher at 2,574.8 points, moving towards its all-time high of 2,599.58 hit in April.
Comments
Comments are closed.