Russian rouble soars to 3-month high ahead of OFZ bond auctions

MOSCOW: The Russian rouble firmed to its strongest level in three months against the dollar on Wednesday, supported by climbing oil prices and continued hopes of a global economic recovery as coronavirus restrictions are gradually eased.

At 0714 GMT, the rouble was 0.7pc stronger against the dollar at 68.28, a level last seen on March 6 before a global sell-off caused by a sharp drop in the price of oil, Russia's key export, and concerns about the novel coronavirus outbreak.

The rouble gained 0.2pc versus the euro to trade at 76.59.

The preservation of favourable global sentiment is playing in the rouble's favour, said Veles Capital analyst Elena Kozhukhova in a note, adding that the Russian currency could soon test the boundary of 68 to the greenback.

Brent crude oil was up 1.8pc at $40.27 a barrel, its highest since March 6, and was continuing to climb ahead of a June 4 OPEC+ meeting, where the world's largest producers will consider extending output cuts into July or August.

The finance ministry will test investors' appetite for Russian sovereign debt later on Wednesday, with three OFZ treasury bond auctions scheduled.

Demand for these bonds serves as a gauge of global market sentiment towards Russian assets.

Russian stock indexes were also at three-month highs.

The dollar-denominated RTS index was up 0.6pc to 2,813.9 points.

The rouble-based MOEX Russian index was 1.6pc higher at 1,297.7 points.