Russian rouble strengthens against yuan, weakens vs US dollar
MOSCOW, Oct 15 (Reuters) -The Russian rouble strengthened against China's yuan but weakened against the U.S. dollar, reflecting global forex trends and weaker oil as trade in the Chinese yuan continued uninterrupted.
By 0830 GMT, the rouble CNYRUB= was up 0.8% at 13.35 against the yuan in the over-the counter (OTC) market, according to LSEG data. It RUB= was down 1.2% to 96.85 against the dollar.
Trading in yuan at the Moscow Stock Exchange (MOEX) continued as usual on the second day after the expiry of a licence from the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) that allowed banks to deal with MOEX.
At 0730 GMT, the volume in yuan trade for tomorrow's settlement on MOEX stood at 10.5 billion roubles ($108.81 million). The yuan weakened by 0.2% to 13.55 against the rouble on MOEX, diverging from the OTC market trade
The OFAC licence was issued to allow banks to wind down operations with MOEX during the four months after Western sanctions on the exchange and its clearing agent, the National Clearing Centre, were introduced on June 12.
The sanctions stopped all trade in dollars and euros at MOEX, making China's 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.
In the run-up to the licence expiry date, yuan rallied on market concerns that Chinese banks operating in Russia and providing yuan liquidity may pull out to comply with Western sanctions.
The central bank cut yuan swap limits to 25 billion yuan from 30 billion on Tuesday, seeking to cool down commercial banks' lending in the Chinese currency which has boomed in recent months, also contributing to the rally in yuan.
The rouble weakened by 0.86% to 105.19 against the euro EURRUB=, LSEG data showed.
Brent crude oil LCOc1, a global benchmark for Russia's main export, was down 3.9% to $74.42 a barrel, on weaker demand outlook.
($1 = 96.5000 roubles)
Reporting by Gleb Bryanski, editing by Ed Osmond
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