Monday, 19 October 2015 13:44
MOSCOW: Russia’s rouble moved lower on Monday in line with a modest fall in oil prices, but exporter dollar sales for upcoming tax payments kept losses in check.
At 0748 GMT, the rouble was 0.3 percent weaker against the dollar at 61.47 and had lost 0.3 percent to trade at 69.78 versus the euro.
Brent crude oil, a global benchmark for Russia’s main export, was down 0.6 percent at $ 50.2 a barrel.
“At current oil levels the rouble looks rather balanced from the balance of payments perspective, leaving relatively little room for additional upside,” Maxim Korovin, a forex analyst at VTB Capital, said in a note.
The rouble has risen over 6 percent against the dollar since the start of the month, mainly because of higher oil prices.
The Russian currency reacted in a restrained manner on Monday to Chinese economic data which showed growth in the world’s second-largest economy dipping below 7 percent in the third quarter.
The data hardened expectations that China would avoid an abrupt fall-off in growth, with analysts predicting a more gradual slide in activity stretching into 2016.
Analysts said the rouble continued to feel support from the end-of-month tax period, which began last week and lasts until Oct 28. The rouble is helped by the tax period as exporters convert a portion of their foreign-currency revenues to pay the rouble-denominated taxes.
Russian share indexes were mixed on Monday, reflecting moves in the rouble.
The dollar-denominated RTS index was down 0.1 percent to 880 points, while its rouble-based peer MICEX traded 0.1 percent higher at 1,717 points.
