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Rouble strengthens as wide spreads characterise Russian FX market
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Rouble strengthens as wide spreads characterise Russian FX market
Jun 18, 2024 2:09 AM

MOSCOW, June 18 (Reuters) - The Russian rouble

strengthened in the over-the-counter (OTC) and the interbank

market on Tuesday, in trading now characterised by wide spreads

after new U.S. sanctions that forced Russia's leading exchange

to halt dollar and euro trading last week.

The sanctions on Moscow Exchange and its clearing

agent, the National Clearing Centre (NCC), ultimately led to a

range of varying prices and spreads as trading moved OTC on June

14, obscuring access to reliable pricing for the Russian

currency.

The rouble was 1.2% higher at 85.94 by 0759 GMT, according

to a Reuters analysis of the OTC market. The euro was up 1.3% at

92.15.

The restrictions on dollar and euro trading have provoked

sales of foreign currency for roubles, boosting the Russian

currency, which is also buttressed by capital controls, interest

rates at 16% and Russia's strong current account surplus.

The yuan, which was already the most traded currency with

the rouble in Moscow, firmed 1.2% to 11.81.

An indication of the wide spreads, the difference between

buying and selling prices, available was the central bank's

official dollar-rouble rate set at 89.05 for Tuesday, calculated

based on OTC trading.

On the interbank market, where liquidity can be low and

major Russian banks that have been sanctioned by the United

States cannot participate, the rouble traded at 87.20 against

the dollar.

Brent crude oil, a global benchmark for Russia's

main export, was down 0.1% at $84.15 a barrel.

(Reporting by Alexander Marrow; Editing by Shinjini Ganguli)

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