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Russian rouble strengthens vs yuan after large forex sale
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Russian rouble strengthens vs yuan after large forex sale
Aug 29, 2024 2:17 AM

MOSCOW, Aug 23 (Reuters) - The Russian rouble remained

flat against the dollar but strengthened further against China's

yuan on Friday, as analysts noted that some major exporting

companies sold large amounts of the Chinese currency.

By 0745 GMT, the rouble was flat at 91.30 to the

dollar, according to LSEG data. The rouble fell by as much as 9%

against the dollar in August following Ukraine's surprise attack

on the Kursk region but then stabilised at current levels.

Trading in major currencies shifted to the over-the-counter

(OTC) market, obscuring pricing data, after Western sanctions on

the Moscow Exchange and its clearing agent, the National

Clearing Centre, were introduced on June 12.

According to an analysis of the OTC market, the rouble

strengthened on Friday by 0.4% to 11.78 against the Chinese

yuan, which has become the most traded foreign currency in

Moscow. The rouble strengthened by over 2% against yuan in

Thursday's trading session.

"Some exporting companies made large sales of Chinese

currency either to pay taxes or to deposit roubles in a bank,"

Alor brokerage analysts noted.

Sales of foreign currency by exporters to pay taxes in

roubles are one of the major factors supporting the rouble.

Additionally, high interest rates, following the central bank's

increase of its benchmark interest rate to 18% in July, make

rouble deposits attractive.

One-day rouble-dollar futures, which trade on the Moscow

Exchange and serve as guidance for the OTC market rates, were

also flat at 89.06.

The central bank's official exchange rate, which it

calculates using OTC data, was set at 91.29 to the dollar.

The rouble was also flat at 101.72 against the euro

, according to LSEG data.

Brent crude oil, a global benchmark for Russia's

main export, was up 0.1% at $77.34 a barrel but was on track to

end the week lower, as weaker U.S. employment data raised

concerns over demand.

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