Russian rouble strengthens to near two-week high against the dollar (updated)
14/12/2023 11:27
(Updates at 1121 GMT, adds Putin quotes in paragraphs 5-7)
MOSCOW, Dec 14 (Reuters) - The rouble climbed to a near
two-week high on Thursday, approaching the 89 threshold to a
weaker dollar after dovish comments from the U.S. Federal
Reserve, while the Russian market awaited an expected interest
rate hike to 16% on Friday.
The dollar was under pressure on Thursday after the Fed's
latest economic projections indicated that the interest rate
hike cycle has come to an end and lower borrowing costs are
coming in 2024.
By 1121 GMT, the rouble was 0.3% stronger against the dollar
at 89.75 RUBUTSTN=MCX , after earlier touching its strongest
point since Dec. 1 at 89.35.
It had lost 1% to trade at 97.99 versus the euro
EURRUBTN=MCX and shed 0.4% against the yuan to 12.55
CNYRUBTOM=MCX .
Ensuring stability and predictability on financial markets
is the priority, President Vladimir Putin said on Thursday,
whose decree obliging some exporters to convert a portion of
their foreign currency revenues into roubles has reduced capital
outflows since October.
The capital controls, which he said were temporary, were
needed because Russia now receives limited information about the
movement of capital concerning exports.
"The government and central bank do not see what is
happening with the volumes of funds our exporters are making
from exports," Putin said. "We ... have a legitimate desire to
see how roubles are accumulated, how they move around, where
they go and in what volumes."
Putin, who last week said he would run again for election
next year, faces numerous economic challenges, but the West's
limited success in imposing an oil price cap is easing pressure
for now.
Most analysts polled by Reuters expect Russia to raise
interest rates by 100 basis points to 16% on Dec. 15. Inflation
pressure exacerbated by labour shortages and lending growth is
expected to force the central bank to extend its monetary
tightening cycle to one last hike.
"We do not exclude that tomorrow the rouble may undergo a
corrective drop on the central bank's setting of a new key
rate," Alexei Antonov of Alor Broker said.
Brent crude oil LCOc1 , a global benchmark for Russia's
main export, was up 1.8% at $75.62 a barrel.
Russian stock indexes were higher.
The dollar-denominated RTS index .IRTS was up 0.2% to
1,065.0 points. The rouble-based MOEX Russian index .IMOEX was
0.1% higher at 3,034.7 points.
(Reporting by Alexander Marrow
Editing by Mark Potter)
((alexander.marrow@thomsonreuters.com))