Russian rouble rebounds against globally weaker dollar

The Russian rouble rebounded from a more than one-week low against a globally weaker dollar on Wednesday, also boosted by high oil prices, elevated interest rates and capital controls.

The Russian rouble rebounded from a more than one-week low against a globally weaker dollar on Wednesday, also boosted by high oil prices, elevated interest rates and capital controls. At 0717 GMT, the rouble was 0.6% stronger against the dollar at 88.88, recovering from ending the previous session at its weakest since Nov. 20.

It gained 0.5% to trade at 97.71 versus the euro and firmed 0.2% against the yuan to 12.46 . The rouble has strengthened against the dollar for seven weeks in a row, rebounding from more than 100 to the dollar thanks to reduced capital outflows since President Vladimir Putin introduced capital controls in October.

It slipped in the previous session as a favourable tax period passed, during which exporters usually convert foreign currency revenues to meet local liabilities. But high oil prices and the prospect of more monetary tightening are supporting the rouble, too. The Bank of Russia, which meets on Dec. 15, raised rates to 15% in late October and has signalled that another increase may be needed.

Brent crude oil, a global benchmark for Russia's main export, was down 0.1% at $81.63 a barrel, but off lows hit earlier this month. Russian stock indexes were mixed.

The dollar-denominated RTS index was up 0.3% to 1,132.2 points. The rouble-based MOEX Russian index was steady at 3,195.7 points.

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