MOSCOW, March 22 ― The rouble weakened towards 93 to the dollar today, showing limited reaction to a widely expected rate hold at 16 per cent by the central bank and struggling to latch on to support from high oil prices and favourable month-end taxes.
By 1240 GMT, the rouble was 0.6 per cent weaker against the dollar at 92.65 and had lost 0.1 per cent to trade at 100.22 versus the euro. It had shed 0.1 per cent against the yuan to 12.74.
All 24 analysts polled by Reuters this week forecast the rate hold, with many economists expecting the bank to start easing monetary policy in June. The bank warned that inflationary pressure remained high, with labour market tightness increasing again.
“We do not think the central bank's comments on the rate decision will fundamentally change the balance of forces on the FX market, but trading volatility may increase in the short term,” said Alor Broker's Alexei Antonov.
Bank of Russia Governor Elvira Nabiullina stressed that the bank was not spending from its reserves to prop up the rouble. Nabiullina said she could not comment on whether capital controls that force exporters to convert foreign currency revenues into roubles would be extended beyond the end of April.
Brent crude oil LCOc1, a global benchmark for Russia's main export, was up 0.3 per cent at US$86.05 (RM407.66) a barrel. It reached its highest point since early November this week.
Month-end taxes that usually see exporters convert foreign currency revenues to meet local liabilities are also supporting the rouble.
Russian stock indexes were lower.
The dollar-denominated RTS index was down 1 per cent to 1,112.9 points. The rouble-based MOEX Russian index 4 per cent lower at 3,273.6 points.
Shares in oil major Lukoil were 1.3 per cent lower after the company's board recommended a dividend of 498 roubles ($5.44) per share for 2023. ― Reuters
