MOSCOW: The Russian rouble climbed to a three-month high past 92 to the dollar on Tuesday, supported by high interest rates after Friday’s rate increase and obligations for exporters to sell a high percentage of their foreign currency revenues.

By 0810 GMT, the rouble was 1% stronger against the dollar at 91.91, its strongest point since Aug. 1. It had gained 1% to trade at 97.67 versus the euro and firmed 0.9% against the yuan to 12.52.

The Bank of Russia hiked interest rates by a higher than expected 200 basis points to 15% on Friday, raising borrowing costs for the fourth meeting running in response to a weak rouble, stubborn inflation and increasing budget spending.

Russian rouble ticks up after central bank rate hike

“The increase in the key rate has led to a decrease in consumer demand and exporters’ requests for dollars and yuan have fallen slightly,” said Alor Broker’s Alexei Antonov.

“But at the same time, growth in the money supply is continuing and this will definitely result in rouble weakening.”

The rouble is also being supported by exporters’ FX conversion.

Month-end tax payments, which were due on Monday, usually see exporters convert foreign exchange to pay domestic liabilities.

Additionally, President Vladimir Putin’s decree on mandatory FX sales came into force this month, requiring 43 groups of exporters to repatriate 80% of FX revenue and then sell 90% of that sum.

The rouble has strengthened from beyond 100 to the dollar since the decree was announced.

The Financial Times on Tuesday reported that Russia was imposing effective capital controls on Western companies selling their operations in Russia with caps and deadlines on foreign currency transactions, moves that would favour the rouble.

Brent crude oil, a global benchmark for Russia’s main export, was up 0.7% at $88.05 a barrel. Russian stock indexes were mixed.

The dollar-denominated RTS index was up 0.4% to 1,098.9 points. The rouble-based MOEX Russian index was 0.6% lower at 3,206.5 points.