Russian rouble rebounds vs dollar in volatile trading
MOSCOW, Dec 12 (Reuters) -The Russian rouble rebounded against the U.S. dollar and China's yuan on Thursday after falling by about 5% against the dollar in the previous session, with analysts expecting more sharp moves in a volatile market.
By 1200 GMT, the rouble RUB= was up 2% at 103.50 against the dollar, according to over-the-counter market data from banks. The rouble had strengthened by 0.25% to 13.88 against the yuan in trading on the Moscow Stock Exchange.
Analysts said foreign currency inflows remained limited in the aftermath of U.S. financial sanctions imposed on Nov. 22, which led to the rouble's sharp weakening at the end of last month.
"Despite the improvement, the supply of foreign currency is still limited by the foreign trade factor. Therefore, a resumption of the downward trend in the rouble's exchange rate is likely," BCS brokerage analysts said.
The U.S. sanctions hit Gazprombank, Russia's third largest lender, which handles payments for energy trade with Europe, disrupting foreign trade transactions and the supply of foreign currency to the Russian market.
Energy transactions with Gazprombank will stop on Dec. 20, but in an earlier separate license issued in October, the U.S. Treasury's Office of Foreign Assets Control (OFAC) authorized energy transactions with nine Russian banks, including sanctioned Sberbank and VTB.
"If the issues with payments for exporters are not resolved and imports do not decrease, the pressure on the rouble will persist," said economist Evgeny Kogan, adding that even the new interest rate hike by the central bank will not help the rouble.
Russia's state oil firm Rosneft's deal with Indian private refiner Reliance RELI.NS to supply nearly 500,000 barrels per day (bpd) worth $13 billion over 10 years, reported by Reuters, also added to longer-term optimism about the rouble.
One-day rouble/dollar futures, which trade on the Moscow Stock Exchange and are a guide for the over-the-counter exchange rate, were down 0.6% at 103.05. The Russian central bank set an official exchange rate at 103.27 to the dollar.
Reporting by Gleb Bryanski; Editing by Andrew Heavens
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