MOSCOW: The Russian rouble hovered near its strongest levels since November on Thursday, boosted by indications from the US Federal Reserve that it will not raise rates for now, while the benchmark Moex stock index hit another record high.
The Fed on Wednesday held rates steady and signalled its three-year drive to tighten monetary policy may be at an end. The outlook for the US economy has turned suddenly cloudy due to global headwinds and impasses over trade and government budget negotiations.
At 0707 GMT, the rouble was at 65.56 against the dollar, down 0.1 percent on the day. Following the Fed move late on Wednesday, the rouble hit 65.36 - its strongest level since Nov. 19.
"This morning the rouble is stronger and sentiment on international markets is upbeat after the Fed indicated that it is putting further interest rate increases on hold," analysts at Aton brokerage said in a note.
Prices for oil, Russia's key exports, were also supportive for the rouble and other Russian assets. Brent crude futures rose 0.8 percent to $62.12 per barrel.
But lingering geopolitical tensions between Moscow and the West as well as Russia's gloomy economic outlook for this year may put a limit on the rouble's gains.
Alor Broker, in a note to clients, recommended locking in profits if the rouble closes in on the 65 mark against the dollar.
Against the euro, the rouble shed 0.2 percent to 75.14.
Comments
Comments are closed.