The rouble steadied on Wednesday, trading close to the 100 level against the dollar it breached in the previous session, with the market waiting to see whether Russian authorities intervene.

The rouble’s last tumble into triple digits in August led the Bank of Russia to make an emergency 350-basis-point rate hike to 12% and authorities discussed reintroducing controls to buttress the currency.

At 0729 GMT, the rouble was 0.1% stronger against the dollar at 99.51 and had lost 0.1% to trade at 104.27 versus the euro. It had firmed 0.2% against the yuan to 13.58.

The rouble has lost support of a favourable month-end tax period that usually sees exporters convert FX revenues to meet local liabilities.

The authorities will have to introduce restrictions in some form should they wish to defend the rouble, said Yevgeny Kogan, professor at Russia’s Higher School of Economics, warning that whoever ultimately pays for this - the central bank, importers, exporters, or the population - it will result in reduced economic competitiveness.

“The long-term consequences will be a further decline in confidence in the rouble, a distortion of economic stimuli and slower economic growth,” Kogan wrote on Telegram.

The Kremlin on Tuesday said the rouble’s weakness was “no cause for concern”.

Brent crude oil, a global benchmark for Russia’s main export, was down 0.5% at $90.49 a barrel, but well above its average 2023 price.

“Everyone expects that the increased inflow of foreign currency revenues from oil companies as a result of rising oil prices will help the Russian currency,” said Alor Broker’s Alexei Antonov. “But it is not happening yet.”

Antonov said demand for foreign currency from importers was not declining despite the weaker currency and higher rates, anticipating the rouble to trade in the 102-105 range against the dollar for some time.

Russian stock indexes were stable.

The dollar-denominated RTS index was up 0.1% to 995.0 points. The rouble-based MOEX Russian index was unchanged at 3,143.1 points.

The risk of more interest rate raises and tax hikes are limiting the stock market’s potential, with the likelihood of a downward move increasing every day, said Sinara Investment Bank.