MOSCOW, June 9 ― The Russian rouble jumped to a two-week high today, gaining as much as 3 per cent against the dollar and euro on the Moscow Exchange, supported by capital controls and high oil prices.
By 1121 GMT, the rouble was 2.5 per cent stronger against the dollar at 57.95, earlier clipping its strongest point since May 25 of 57.4075.
It had gained 3.4 per cent to trade at 61.42 versus the euro, a two-week high.
The rouble has become the world's best-performing currency this year as it has been steered by capital controls for more than three months since Moscow sent tens of thousands of troops into Ukraine on February 24.
Brent crude oil, a global benchmark for Russia's main export, was up 0.1 per cent at US$123.7 (RM543.45) a barrel, after surging higher in the previous session.
Rising oil prices are pulling the rouble higher, said SberCIB Investment Research in a note.
The rouble showed little reaction to Russia's decision to relax some capital controls this week, including an increased ceiling for cross-border transactions for individuals and the move to allow export-focused companies to transfer forex to their overseas accounts under certain conditions.
The central bank is now in focus as it will hold a rate-setting meeting on Friday. A rate cut could put some downside pressure on the rouble and support prices of OFZ treasury bonds.
A majority of analysts polled by Reuters expect a 100-basis-point rate cut to 10 per cent as the bank tries to make lending more affordable amid sluggish consumer demand and a pause in inflation.
But a sharper cut to 9 per cent was also possible as economic prospects and inflation easing give the central bank more room to manoeuvre, BCS Global Markets said.
Consumer inflation in Russia slowed to 17.10 per cent in year-on-year terms in May from 17.83 per cent in April, which was its highest level since January 2002, data showed yesterday.
Russian stock indexes were mixed.
The dollar-denominated RTS index gained 0.9 per cent to 1,242.2 points. The rouble-based MOEX Russian index shed 1.4 per cent to 2,285.9 points. ― Reuters
