The ruble rises to March 2020 and euro levels to increase inventories

The Russian ruble expanded its rise early Thursday in Moscow, supported by tax payments at the end of the month, which led to an increase in the conversion of foreign currencies to the ruble, while the stock index recorded a solid rise.

The movement of the Russian market is partially artificial as the ruble is supported by capital controls. On the other hand, stocks are prohibited from being sold out and foreign players are prohibited from giving up stocks of Russian companies without permission.

At 07:37 GMT, the ruble was 0.3% stronger than the dollar at 72.59 after hitting 72 on a light trade on the Moscow Stock Exchange. Against the euro, it reached the last level seen in early March 2020, 74.3525, and then softened 0.5% at 75.75 to retreat trading.

Analysts at Promsvyazbank said the Russian currency is expected to fluctuate in the range 71-73 up to the greenback.

The ruble has been selling foreign exchange revenues for the past few days to meet local debt, which could exceed 3 trillion rubles ($ 41.24 billion) this month, according to analysts surveyed by Reuters. Hardened in.

The ruble has fully recovered to the levels seen before February 24, when Russia launched what is called a “special military operation” in Ukraine, leading to unprecedented western sanctions, including a freeze on Russia’s reserves. Did.

In the bond market, yields on 10-year benchmark OFZ government bonds stabilized at nearly 10.13% prior to Friday’s central bank interest rate setting meeting.

The Central Bank of Russia is expected to cut key interest rates by 200 basis points to 15% earlier this week as it seeks to promote lending to the economy in the face of high inflation, Reuters’ study suggests earlier this week. bottom.

Russia’s stock index has risen. The dollar-denominated RTS index rose 2.2% to 1,072.0 points, while the ruble-based peer MOEX rose 1.9% to 2,470.7 points.