MOSCOW (REUTERS) – On Monday, the Russian rouble moved up against the dollar, gaining some ground after seeing its biggest weekly decline since early July due to concerns about how sanctions on oil and gas might affect Russia’s export earnings.
Following the implementation of an oil embargo and price cap, the rouble lost roughly 8% last week and is currently down 12.5% this month. The current fall, according to the finance ministry, was caused by recovering imports.
The rouble was 0.8% stronger versus the dollar at 69.67 at 07:11 GMT. It strengthened 0.2% against the yuan to 9.91 and was up 2.3% against the euro at 73.91.
Otkritie Research stated in a note that trading activity is anticipated to be minimal on Monday due to the rouble’s potential to rise during the ongoing month-end tax season, when Russian exporters often convert foreign exchange proceeds to pay local responsibilities.
Supported by capital controls and lower imports, the rouble has remained one of the top performing global currencies versus the dollar this year, but in the past week, Brazil’s real has supplanted it.
Russian shares received some support as Brent crude oil, a worldwide benchmark for the country’s primary export, rose 3.7% to $84.0 a barrel.
In the final week of the year, investors are expected to rebalance their portfolios, which might cause the market to move either up or down, according to Sinara Investment Bank.
The MOEX Russian index, which is denominated in roubles, increased by 0.4% to 2,132.1 points while the dollar-denominated RTS index increased by 0.1% to 964.1 points.