HomeForex UpdatesRouble reverses rally as Russia eases capital controls By Reuters

Rouble reverses rally as Russia eases capital controls By Reuters


FILE PHOTO: A mirrored image of a yearly chart of U.S. {dollars} and Russian roubles are seen on rouble notes on this picture illustration taken in Warsaw November 7, 2014. REUTERS/Kacper Pempel

(Reuters) – The Russian rouble weakened on Tuesday, stepping away from close to five-year highs towards the euro, after the central financial institution eased some capital controls that have been the primary driver of its power up to now few weeks.

The rouble has grow to be the world’s best-performing forex this yr regardless of a full-scale financial disaster, though that is due to synthetic help from controls that Russia imposed to protect its monetary sector in late February after it despatched tens of hundreds of troops into Ukraine.

At 0741 GMT, the rouble was 0.7% weaker at 63.89 towards the greenback, shifting away from the 62.6250 stage reached on Friday, its strongest since early February 2020.

In opposition to the euro, the rouble fell 1.1% to 66.50, hovering close to its strongest stage since mid-2017 of 64.9425 that it touched final week.

The rouble pared features after the central financial institution raised the ceiling for cross-border transactions, permitting Russian residents and non-residents from pleasant states to channel overseas forex overseas at an quantity equal to as much as $50,000 a month, from the earlier restrict of $10,000.

The financial institution’s determination is unlikely to instantly change the stability of energy out there, the place export-focused corporations are obliged to transform 80% of their revenues because the central financial institution can’t intervene itself after the West froze about half of its gold and overseas trade reserves.

However the newest transfer from the central financial institution will be seen as a sign that the current part of the rouble rally may very well be over quickly, BCS Brokerage mentioned.

On the inventory market, the dollar-denominated RTS index shed 0.2% to 1,171.6 factors, whereas the rouble-based MOEX Russian index added 0.5% to 2,377.6 factors.

Promsvyazbnk analysts mentioned the MOEX index could climb above 2,400 throughout the day.

For Russian equities information see

For Russian treasury bonds see

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