MOSCOW: The rouble leapt past 57 against the dollar on Friday to a 10-day high in volatile Moscow trade, supported by the beginning of a favourable tax period, while Russian stocks were on track to end the week on a high.
By 1158 GMT, the rouble was 2.4% stronger against the dollar at 56.92, its strongest mark since July 5, having earlier slid to as low as 59.0525 in volatile trading.
It had gained 2.8% to trade at 57.11 versus the euro .
The rouble is set to see extra support later this month as export-focused companies usually step up conversion of their forex revenues to meet local liabilities. Tax payments start on Friday and the bulk are due in the last week of July.
Otkritie Research said it was possible the rouble could move into the 50-55 range against the dollar during the July tax period.
The rouble is the world’s best-performing currency this year, boosted by measures - including restrictions on Russian households withdrawing foreign currency savings - designed to shield Russia’s financial system from Western sanctions imposed after Moscow sent troops into Ukraine on Feb. 24.
The currency has also benefited from soaring proceeds from commodity exports and a sharp drop in imports that helped to more than triple Russia’s current account surplus in the first half of 2022 to $138.5 billion.
But the upward pressure on the rouble could weaken as the Russian central bank is widely expected to cut its key rate from 9.5% at its July 22 board meeting after Russia posted a drop in consumer prices in June.
The United States on Thursday sought to facilitate Russian food and fertilizer exports by reassuring banks, shipping and insurance companies that such transactions would not breach Washington’s sanctions on Moscow.
“Russian stocks may see some relief after a slight easing of sanctions by the US yesterday,” said Alfa Bank.
The dollar-denominated RTS index was up 3.5% at 1,153.1 points. The rouble-based MOEX Russian index was 1% higher at 2,083.0 points, recovering from its lowest point since Feb. 24 of 2,049.44, hit on Thursday.
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