Ruble shows strength against major currencies
Date
10/24/2023 5:54:51 AM
(MENAFN) According to data from the Moscow Exchange (MOEX), the Russian ruble demonstrated strength against major currencies on Monday, surpassing the 94-ruble mark against the US dollar for the first time since September 13.
Additionally, the ruble made gains against the euro, with a rate of 99.9 rubles to the euro as of 09:30 GMT, marking a six-week high.
This resurgence in the ruble is attributed by analysts to a recent directive mandating Russian exporters to convert their foreign currency earnings and bring the proceeds back into the country. This regulation, unveiled on October 12, is aimed at shoring up the currency, which experienced a decline to its lowest value since March 2022 earlier this month. The directive encompasses 43 Russian exporters from various sectors, including energy, metals, chemicals, forestry, and agriculture.
“The Russian ruble has finally come out of last week’s decline. The market needed that week for consolidation after the introduction of the foreign currency earnings repatriation regulation,” BKS Express market expert Michael Zeltser informed a Russian news outlet. In his opinion, the ruble’s increase against the greenback “is not over yet” and following some stabilization Western currencies “risk continuing to fall, while the ruble will be ready for an offensive.”
Experts stress that high international oil rates lend backing to the Russian currency as well, as do the next tax payments by Russian exporters.
“The ruble is likely to continue strengthening on the payment of taxes, which will support prices of government securities. We expect that tax payments will allow the ruble to consolidate in the range of 90-95 rubles to a dollar,” Dmitry Gritskevich, chief of banking and economic markets analysis at PSB, projected.
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