© Reuters. Girl holds Russian Rouble banknotes on this illustration taken Could 30, 2022. REUTERS/Dado Ruvic/Illustration
By Alexander Marrow
MOSCOW (Reuters) -The Russian rouble strengthened on Wednesday, climbing to a close to two-week excessive towards the euro because the finance ministry held OFZ treasury bond auctions for simply the second time since Moscow despatched tens of 1000’s of troops into Ukraine in February.
Geopolitical dangers and unpredictability proceed to buffet Russian markets. President Vladimir Putin launched martial regulation on Wednesday in 4 Ukrainian areas he says are a part of Russia.
By 1531 GMT, the rouble was up 0.6% towards the euro at 60.36, earlier reaching 59.4450, its strongest level since Oct. 7.
It was 0.1% weaker towards the greenback at 61.66, earlier coming near strengthening previous the 61 threshold, and had firmed 0.5% towards the yuan to eight.46, having touched a two-week excessive.
The rouble is buttressed by a month-end tax interval that normally sees export-focused corporations convert international change revenues into roubles to pay home tax liabilities.
Earlier than that interval ends, it should possible be laborious for the rouble to fall previous 62 to the dollar, stated Veles Capital analysts.
The finance ministry held its first OFZ bond auctions in a number of weeks, having fun with demand of 108.1 billion roubles ($1.76 billion) on two 25-billion-rouble placements. Sturdy demand at OFZ auctions helps the rouble.
“The demand seen at right now’s auctions might function an indication of the relative stabilisation of the state debt market,” Raiffeisen Financial institution analysts stated.
The primary bond issued on Wednesday got here with a floating-rate coupon. Promsvyazbank analysts stated the ministry final positioned a “floater” in November 2020.
“The exterior surroundings for the rouble-denominated bond market stays contradictory,” Promsvyazbank analysts added, pointing to enhancing world demand for danger property on the again of U.S. financial information, however with decrease oil costs hampering the market.
, a worldwide benchmark for Russia’s most important export, was up 0.9% at $90.8 a barrel, however effectively away from highs of round $98 a barrel reached early final week.
Russian inventory indexes had been decrease.
The dollar-denominated RTS index was down 3.1% to 1,007.8 factors. The rouble-based MOEX Russian index was 3% decrease at 1,971.8 factors.
($1 = 61.5000 roubles)