MOSCOW: The Russian rouble weakened against the dollar and yuan on Tuesday, under pressure at the start of the month as exporters reduced their foreign currency sales after paying taxes and the central bank’s reduced FX sales kicked in.

By 0704 GMT the rouble was trading 0.9% lower at 87.50 against the dollar, in relatively low volume trade after US sanctions halted exchange trading in the dollar in June.

It was down 1.9% at 96.75 against the euro. Sanctions on Moscow Exchange and its clearing agent, the National Clearing Centre (NCC), have led to a range of varying prices and spreads as trading shifted to the over-the counter (OTC) market on June 14, obscuring access to reliable pricing for the Russian currency.

The average dollar-rouble mixed composite rate, calculated by LSEG and based on data from international brokers and counterparties, stood at 87.50.

Against the yuan, which had already become the most traded foreign currency in Moscow before the latest sanctions were imposed, the rouble shed 1.2% to 11.88, according to an analysis of the OTC market.

Russian rouble mostly unchanged against US dollar

Month-end tax payments typically put pressure on the rouble at the start of each month, as exporters reduce FX selling.

Reduced foreign currency sales by the central bank from July are also limiting the rouble’s capacity to strengthen, as is the smaller impact of capital controls, which were softened last month.

Brent crude oil, a global benchmark for Russia’s main export, was up 0.3% at $86.86 a barrel.