MOSCOW, October 25 - The ruble strengthened on both spot and futures markets of the Moscow Exchange, supported by pre-tax export revenue sales. Trading volumes for the yuan/ruble pair approached weekly highs.
The Central Bank of Russia (CBR) raised its key interest rate by 200 basis points to 21%, the highest level since 2003. This unexpected move did not significantly alter currency quotes, despite initial market reactions.
By 14:00 MSK, the yuan/ruble pair was trading near 13.50, with the ruble gaining 0.3% against the dollar and showing minimal changes against the euro.
Analysts anticipate a slight recovery for the ruble ahead of tax payments due on October 28, projecting a target range of 13.30-13.60 rubles per yuan. However, concerns remain that further rate hikes may not provide substantial support for the ruble.
The ruble's depreciation is influenced by lower oil prices and reduced foreign currency inflows due to the practice of selling oil for rubles, alongside easing export sale requirements. Additionally, ongoing sanctions have complicated export-import operations, contributing to currency volatility.
In the broader market, the dollar traded at approximately 96.62 rubles, while the euro was at 104.60 rubles, reflecting a 0.4% decline for the ruble against both currencies.