Russian rouble strengthens, volatility persists
MOSCOW, Dec 18 (Reuters) -The Russian rouble strengthened against the U.S. dollar on Wednesday, following a weakening in the previous day's session, as volatility persisted due to disruptions in foreign trade payments after new U.S. sanctions imposed in November.
By 0830 GMT, the rouble RUB= was up by 1.5% at 103.00 against the dollar, according to over-the-counter market data from banks. The rouble strengthened by 0.1% to 14.05 against China's yuan in trading on the Moscow Stock Exchange.
The rouble fell by as much as 15% against the dollar in November after U.S. sanctions hit Russia's third-largest lender Gazprombank, which handled payments for Russian energy. The sanctions prompted panic buying of foreign currency.
The rouble has since regained some of the lost ground and stabilised above 100 to the dollar, seen by the market as the new equilibrium level, at which the Russian currency could remain for some time provided there are no new external shocks.
U.S. Office of Foreign Assets Control(OFAC) also issued licenses authorizing U.S. entities to wind down transactions involving Gazprombank and other sanctioned banks by Dec. 20.
"The forex market is influenced not only by traditional factors but also by such factors as the end of the OFAC deadline for winding down operations with banks from the November package," Bank of Saint Petersburg's analysts said in a note.
The market was expecting some support for the rouble from increased foreign currency sales by exporting companies, which need to buy roubles at the end of the month to make their corporate tax payments.
One-day rouble/dollar futures, which trade on the Moscow Stock Exchange and are a guide for the over-the-counter exchange rate, were flat at 104.1. The Russian central bank set an official exchange rate at 103.00 to the dollar.
Reporting by Gleb Bryanski; Editing by Angus MacSwan
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