The Russian ruble remained strong above $ 77 on Wednesday’s volatile trading, but the stock index reversed previous losses as markets monitored movements around Ukraine and sanctions against Russia.
The country’s economy is facing rising inflation and capital flight after the West imposes severe sanctions on Moscow for sending tens of thousands of troops to Ukraine on February 24.
By 1413 GMT, the ruble rose 2.3% to $ 76.68, near the levels seen before February 24. Temporarily reached $ 71.8850 on the Moscow Stock Exchange.
Against the euro, the ruble rose 2% to 82.34, off the record low of 132.41 hits on the Moscow Stock Exchange on March 10.
On Tuesday, the central bank slightly relaxed capital restrictions on export-centric companies outside the commodities and energy sector, extending the deadline for converting foreign currency into rubles from 3 days to 60 days.
Last year, Russia’s total non-commodity and non-energy exports totaled $ 191 billion, or 38% of commodities exports, according to Sberbank CIB analysts.
Central bank movements could lead to a slight decline in market activity, but excessive FX supply continues, Promsvyazbank analysts said in a note.
According to analysts surveyed by Reuters, the ruble will also require a record 3 trillion rubles ($ 39.1 billion) to pay taxes this month, which will require some export-centric companies to sell foreign currency. You will get support from something.
“We believe it could reach $ 75 next week as oil and gas exporters are aggressively selling FX,” said Sberbank CIB.
In the bond market, where non-residents have not been allowed to sell paper since late February, yields on 10-year benchmark OFZ bonds have dropped from about 11.6% a week ago to 10.16%, the lowest since February 21st. It has declined. Yields are inversely proportional to bond prices.
Bonds are driven by the expectation that the central bank will consider reducing key interest rates from 17% by April 29.
Russia’s stock index has been mixed after a rapid fluctuation from losses to profits.
The dollar-denominated RTS index rose 2% at 950.1 points. The ruble-based MOEX Russia index fell 0.2% to 2,312.8 points.
Equities of Russia’s largest lenders, Sberbank and VTB, have outperformed the market by rising about 0.4% and 0.1%, respectively, after the central bank announced that it would not publish its bank’s financial statements on its website until October. bottom.
($ 1 = 76.70 rubles)