Ruble Climbs to March 2020 Levels vs. Euro

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Ruble Climbs to March 2020 Levels vs. Euro

Ruble Climbs to March 2020 Levels vs. Euro

The n ruble continued gains in early Moscow trade on Thursday, aided by month-end tax payments, which resulted in the significant conversion of foreign cash into rubles, while market indices showed solid increases.

n market movements are partly artificial because capital controls support the ruble. At the same time, stocks trade with a short-selling ban, and foreign participants prohibit from selling shares in n enterprises without permission. The ruble was 0.3 percent firmer versus the dollar; it traded at 72.59 on the Moscow Exchange after reaching 72 in fair trade. It reached 74.3525 against the euro, a level last seen in early March 2020, before falling 0.5 percent to 75.75.

According to Promsvyazbank analysts, the n currency fluctuates between 71 and 73 rubles to the US dollar.

The ruble has strengthened as export-oriented firms sold their foreign exchange earnings to meet local liabilities that could top 3 trillion rubles ($41.24 billion) this month. The ruble had recovered to pre-February 24 levels when  launched a “special military operation” in e; it resulted in unprecedented western sanctions, including a freeze on ’s reserves.

Bond yields on 10-year benchmark OFZ treasury bonds have stabilized near 10.13 percent ahead of Friday’s central bank’s rate-setting meeting.

According to the poll conducted earlier this week, the Bank of  predicted to drop its key interest rate by 200 basis points to 15% to boost financial lending in the face of high inflation.

n stock indices were up. The dollar-denominated RTS index gained 2.2 percent to 1.072.0 points, while the ruble-denominated MOEX gained 1.9 percent to 2,470.7 points.

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