Russian rouble strengthens on hopes of easing of tensions with West
MOSCOW, Nov 13 (Reuters) -The Russian rouble strengthened against the U.S. dollar and the euro on Wednesday, with analysts saying the volatile and opaque trade in the currency was cautiously reacting to hopes of an easing of tensions with the West after the election of Donald Trump.
By 0800 GMT, the rouble was 0.3% stronger against the dollar RUB= at 98.10 and 0.3% stronger against the euro EURRUB= at 104.17, according to LSEG data.
Globally, the U.S. dollar held just below a 6-1/2-month peak against major peers, following Trump's victory in the U.S. presidential election. Trump said during campaigning that he could bring peace in Ukraine within 24 hours if elected.
Against China's yuan the rouble weakened by 0.6% to 13.57 in trade on the Moscow stock exchange after strengthening in three consecutive sessions.
"Fundamentally, the rouble is influenced by cautious expectations of geopolitical easing and stabilisation in the money market as yuan liquidity rates are normal," BCS brokerage analysts said.
The rouble has lost about 13% against the dollar since early September and briefly hit the 100 mark last week. BCS analysts said that they see at least a 2% potential for further strengthening of the rouble in the coming days.
Western sanctions imposed on the Moscow Exchange (MOEX) and its clearing agent, the National Clearing Centre, on June 12 stopped all trade in dollars and euros at MOEX, making the yuan the most-traded foreign currency in Russia.
Trade in dollars and euros has shifted to the over-the-counter (OTC) market, obscuring price data and making the rouble's exchange rate more volatile.
One-day rouble-dollar futures, which trade on the Moscow exchange and are a guide for OTC market rates, were up 0.3% at 98.47. The central bank's official exchange rate, which it calculates using OTC data, was last set at 97.86 to the dollar.
Brent crude oil LCOc1, a global benchmark for Russia's main export, was up 0.4% at $72.14 a barrel on signs of near-term supply tightness.
Reporting by Gleb Bryanski; Editing by Toby Chopra
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