Rouble weakens after exporters complete forex sales for tax payments
MOSCOW, June 28 (Reuters) -The Russian rouble weakened against the dollar after exporters completed their forex sales to meet Friday's monthly tax payment deadline.
Traders said Thursday's announcement by the central bank that it would reduce its daily foreign currency sales in the second half of the year - separate from the operations it conducts on behalf of the finance ministry - was also a factor weighing against the rouble.
On the interbank market, where liquidity can be low as major Russian banks that have been sanctioned cannot participate, the rouble traded 1.5% lower at 86.30 to the dollar RUB= by 0756 GMT.
The average dollar-rouble mixed composite rate, calculated by LSEG and based on data from international brokers and counterparties, stood at 86.24 RUB=TRB.
The central bank's official dollar-rouble rate was set at 84.96 for June 28,calculated on the basis of OTC trading.
Sanctions on Moscow Exchange MOEX.MM and its clearing agent, the National Clearing Centre (NCC), have led to a range of varying prices and spreads after it halted exchange trading in the dollar and euro this month. Trade moved to the over-the-counter (OTC) market on June 14.
Russia's central bank said on Thursday it would sell 8.4 billion roubles ($97.4 million) worth of foreign currency per day in the second half of the year, down from 11.8 billion roubles in the first half.
The central bank's operations are conducted on the domestic forex market in Chinese yuan, and are related to the replenishment and spending of money from the state's rainy day National Welfare Fund.
The bank's own forex operations are separate from those it conducts on behalf of the finance ministry, for which in the current month it is buying the equivalent of 3.7 billion roubles a day of foreign currency.
On Friday the rouble was trading at 11.70 to the yuan, down 1.6%.
Brent crude oil LCOc1, a global benchmark for Russia's main export, was up 0.7% at $86.96 a barrel. Traders said the firm oil price and expectations that the Russian central bank would increase its key rate at its July meeting would lend support to the rouble.
Reporting by Reuters, writing by Mark Trevelyan; Editing by Anil D'Silva
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
