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Russian rouble weakens after central bank withdraws support
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Russian rouble weakens after central bank withdraws support
Dec 27, 2024 1:06 AM

MOSCOW, Dec 27 (Reuters) - The Russian rouble weakened

against the U.S. dollar on Friday after the central bank

announced it will withdraw some support for the currency in the

first working week of 2025 after the New Year's break.

The rouble was down 0.5% at 100.50 against the

dollar by 0800 GMT, over-the-counter market data showed. The

Russian currency weakened 0.25% to 13.44 against China's yuan in

trading on the Moscow Stock Exchange.

The central bank said it will reduce its net forex sales by

almost 60% from Jan. 9 under its complex scheme of foreign

currency operations both to ensure supply on the domestic market

and to act on behalf of the finance ministry.

"This indicates a winter stabilisation of the situation and

the damping of exchange rate volatility following the extreme

turbulence at the end of autumn," BCS brokerage analysts said.

After the rouble tumbled to its lowest mark in around 2-1/2

years in November as a result of new U.S. financial sanctions,

the central bank moved in to prop up the rouble by deferring

purchases of foreign currency on behalf of the finance ministry.

The rouble regained much of the lost ground since then and

stabilised around 100 to the dollar, the level seen by the

market as the new equilibrium for the Russian currency.

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

Stock Exchange and are a guide for the over-the-counter exchange

rate, were up 0.4% at 101.42. The Russian central bank set an

official exchange rate at 99.23 to the dollar.

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