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The Russian rouble fell past the psychologically key 100 per U.S. dollar threshold for the first time since March last year on Monday. FILE PHOTO: Russian rouble and U.S. dollar banknotes are seen in this illustration photo taken March 10, 2023. MICHAEL WANG, DEPUTY PORTFOLIO MANAGER, MIRABAUD ASSET MANAGEMENT“The rouble has been underperforming all this year, partly on lower oil revenues but also because of capital flight. “The rouble remains under the selling pressure in the current global environment dominated by concerns about China, which is Russia’s most important trading partner.”“The sharp fall in Russia’s current account surplus leaves the rouble more vulnerable to global sentiment. The CBR (Russian central bank) may have to raise interest rates further to cool down domestic demand and slow down imports to stabilize the rouble.”
Persons: Dado Ruvic, Vladimir Putin’s, MICHAEL WANG, TIMOTHY ASH, Nabiullina, , PIOTR MATYS Organizations: REUTERS, CBR Locations: Russian, Russia, POLAND, China, Russia’s
Moscow's actions have deprived many foreign investors of the ability to trade in Russian securities, including depositary receipts. Investors are worried about future copycat actions by other governments who might look to reduce foreign influence over their leading companies. Depositary receipts, or DRs, are certificates issued by a bank representing shares in a foreign company traded on a local stock exchange. But events in Russia have forced many investors to write down the value of depositary receipts of Russian companies to zero, given their inability to trade them. CONSEQUENCESLoss of confidence in DRs could drain needed foreign capital from firms in emerging economies, for instance.
Persons: Dado Ruvic, Peter C, Earle, Christopher Day, Michael Ashley Schulman, Goldman Sachs, III, Detsky Mir, Goldman, Otkrytie, Schulman, Grzegorz Drozdz, Malcolm Dorson, Sinead Cruise, Carolina Mandl, David Gregorio Our Organizations: REUTERS, Global, American Institute for Economic Research, Reuters, Citigroup, Companies, Citi ., Reuters Graphics, DR, Investors, Doliver Advisors, Running, Capital Advisors, Conotoxia, Russian, Thomson Locations: Moscow, Ukraine, Brazil, China, Russia, GDR, GDRs, United States, Britain, London, Carolina, New York
Russian c.bank to hold emergency rate meeting as rouble tumbles
  + stars: | 2023-08-14 | by ( ) www.reuters.com   time to read: +1 min
A Russian rouble banknote is seen in front of a descending and rising stock graph in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration/File PhotoMOSCOW, Aug 14 (Reuters) - Russia's central bank will hold an extraordinary meeting on Tuesday to discuss the level of its key interest rate, it said on Monday, as the sharply weakening rouble prompted calls for higher borrowing costs. President Vladimir Putin's economic adviser rebuked the central bank on Monday as the rouble slid past 101 per U.S. dollar, blaming loose monetary policy in a sign of growing discord among Russia's monetary authorities. The bank, whose key rate is currently 8.5%, had been scheduled to hold its next meeting on rates on Sept. 15. The rouble pared its losses and firmed back to below 100 per U.S. dollar after the central bank announced Tuesday's meeting.
Persons: Dado Ruvic, Vladimir Putin's, Alexander Marrow, Gareth Jones Organizations: REUTERS, Reuters, Thomson Locations: Moscow
A view shows Russian rouble coins in this illustration picture taken March 25, 2021. REUTERS/Maxim Shemetov/IllustrationAug 9 (Reuters) - The rouble hit a more than 16-month low on Wednesday, hampered by strong foreign currency demand and limited supply, with Russia's shrinking trade surplus and widening budget deficit also hurting sentiment. By 1023 GMT, the rouble was 0.2% weaker against the dollar at 97.32 , earlier hitting 97.48, its weakest point since March 25, 2022. It has been under pressure all year from Russia's shrinking balance of trade, as export revenues fall and imports rebound, dropping around 28% year-to-date from levels near 70 to the dollar. Brent crude oil , a global benchmark for Russia's main export, was 0.7% higher at $86.80 a barrel.
Persons: Maxim Shemetov, Egor Zhilnikov, Alexey Antonov, Antonov, Alexander Marrow, Andrew Heavens, Sharon Singleton Organizations: REUTERS, Alor Broker, Brent, Thomson Locations: Alor
Russia, like many countries, has been developing a central bank digital currency (CBDC) - digital tokens issued by central banks - over the last couple of years in a bid to modernise its financial system and head off cryptocurrencies such as bitcoin. "We expect to test operations with real customers," the central bank's First Deputy Governor Olga Skorobogatova said on Wednesday. The pilot test will include opening digital wallets, making purchases with digital roubles and transfers between around 600 customers and 30 companies from 11 cities. The digital rouble is scheduled to be widely introduced in 2025. Next year, the central bank will expand the list of participants, with another 19 banks keen to join the pilot, Skorobogatova said.
Persons: Maxim, Olga Skorobogatova, Skorobogatova, Elena Fabrichnaya, Alexander Marrow, Louise Heavens Organizations: REUTERS, Council, Thomson Locations: Russia, Ukraine MOSCOW, Moscow, Caribbean, Nigeria, U.S, China, Ukraine
Kazakhstan, a former Soviet republic bordering Russia, is home to over 3 million ethnic Russians and has traditionally been one of Russia's closest allies. Clearly targeting Kazakhs, ads seen by Reuters feature Russian and Kazakh flags and the slogan "Shoulder to shoulder". The ads lead to a website that offers potential recruits a chance to join the Russian army in the Sakhalin region in Russia's Far East. Joining military conflicts abroad for pay is illegal under Kazakh law. In Kyrgyzstan, a local man was sentenced to 10 years in prison in May for joining Russian proxy forces in Ukraine's Luhansk region.
Persons: Russia's, Wagner, Mariya Gordeyeva, Gareth Jones Organizations: Russian, Astana, Moscow, Reuters, Human Capital Development Agency of, Kazakhstan's Ministry of Information, Social Development, Soviet Central, Thomson Locations: Kazakhstan, Soviet, Russia, Ukraine, Kazakh, Russian, Sakhalin, Russia's Far, Lysychansk, Tajikistan, Kyrgyzstan, Ukraine's Luhansk, Moscow, Bishkek
LA PAZ, July 28 (Reuters) - Bolivia's government is determined to curb dependence on the U.S. dollar for foreign trade, instead turning to the Chinese yuan, officials said, as Latin American support for alternative currencies grows. Bolivia has faced months of severe dollar shortages, driven in part by falling natural gas production, a key national export. Net foreign currency reserves have fallen to roughly $4 billion from a peak of $15 billion in 2014, pressuring state finances and threatening Bolivia's long-defended currency peg with the dollar. Not in dollars, but in its own currency," Montenegro said. Financial transactions worth 278 million Chinese yuan ($38.7 million) accounted for 10% of Bolivia's foreign trade in May through July, Montenegro said.
Persons: Marcelo Montenegro, Mikhail Ledenev, Daniel Ramos, Lucinda Elliott, Richard Chang Organizations: LA, U.S, Banco Union, Russia's, Thomson Locations: LA PAZ, La Paz . Bolivia, China, Montenegro, Bolivian, Russian, Bolivia, Moscow, Western, Russia, Beijing, Brazil, Argentina
Uzbek leader holds early election to extend rule
  + stars: | 2023-07-09 | by ( ) www.reuters.com   time to read: +2 min
TASHKENT, July 9 (Reuters) - Uzbekistan's President Shavkat Mirziyoyev holds an early election on Sunday to extend his rule for another seven years, just months after changing the constitution to lift term limits that would have required him to step aside in 2026. Foreign trade has been opened, foreign exchange controls have been lifted, and the political system has been liberalised somewhat. Like other states in Central Asia, Uzbekistan is trying to minimise collateral damage from Western sanctions imposed against its traditional trading partner Russia over the war in Ukraine. Politically, Tashkent has maintained neutrality, calling for peace in Ukraine and pledging to abide by Western sanctions while maintaining normal ties with Moscow. Officially running against Mirziyoyev are three candidates representing the Ecological Party, People’s Democratic Party and the Social-Democratic party of Adolat (Justice).
Persons: Shavkat Mirziyoyev, autocrat Islam Karimov, Mukhammadsharif, Olzhas Organizations: Mirziyoyev, Ecological Party, People’s Democratic Party, Social, Democratic, Thomson Locations: TASHKENT, Mirziyoyev, Uzbekistan, Soviet, Central Asia, Russia, Ukraine, Russian, Tashkent, Moscow, West
By 1156 GMT, the rouble was 1.8% weaker against the dollar at 89.15 after earlier hitting 89.3275, its weakest point since March 29, 2022. It lost 1.8% to trade at 96.74 versus the euro , also a 15-month low. It shed 1.4% against the yuan to 12.23 <CNYRUBTOM=MCX>, a more than 14-month low. The rouble lost a key support factor on Wednesday as a month-end tax period that typically sees exporters convert foreign currency revenues to meet local liabilities passed. Brent crude oil , a global benchmark for Russia's main export, was up 0.1% at $74.41 a barrel.
Persons: C.bank, Yevgeny Prigozhin's, Vladimir Putin's, Alexei Zabotkin, Zabotkin, Alexander Marrow, Jamie Freed, Robert Birsel, Jane Merriman, Mark Heinrich Our Organizations: Alor Broker, Bank of Russia, Brent, Gazprom, Thomson Locations: Moscow, Russian, Alor, Russia, Ukraine
June 30 (Reuters) - The Russian rouble slumped to a more than 15-month low against the dollar and euro on Friday, weighed down by domestic political risk concerns after an aborted armed mutiny over the weekend and lacking support drivers. By 0734 GMT, the rouble was 0.8% weaker against the dollar at 88.26 after earlier hitting 88.6775, its weakest point since March 29, 2022. It lost 0.9% to trade at 95.97 versus the euro after also hitting a 15-month low of 96.3225. The rouble lost a key support factor on Wednesday as a month-end tax period that typically sees exporters convert foreign currency revenues to meet local liabilities passed. The rouble-based MOEX Russian index (.IMOEX) was 0.4% lower at 2,785.8 points.
Persons: Yevgeny Prigozhin's, Vladimir Putin's, Alexander Marrow, Jamie Freed, Robert Birsel Organizations: Alor Broker, Gazprom, Thomson Locations: Russian, Alor, Russia, Ukraine, Moscow, Brent
Japanese yen and U.S. dollar banknotes are seen in this illustration picture taken June 15, 2022. The ministry of finance and BOJ intervened in the currency market last autumn when the dollar strengthened beyond 145 yen. “They’re expressing confidence that a faster rate of QT is going to deliver a stronger crown and I think that’s a bit unproven,” ING’s Turner said. The dollar added 0.1% to 7.2492 yuan in the offshore market, taking it close to the previous day’s 7-1/2-month low of 7.2694. The Russian rouble weakened past 87 against the dollar to a 15-month low, hampered by domestic political risk concerns after an aborted mutiny over the weekend.
Persons: Florence Lo, Jerome Powell, Kazuo Ueda, Ueda, , BOJ, , Chris Turner, ING’s Turner, hasn’t, Russian rouble Organizations: U.S, REUTERS, Bank of Japan, ING, Reuters, People’s Bank of, Citi Locations: U.S, there’s, Spain, tomorrow’s, North Rhine Westphalia, Germany’s, People’s Bank of China, Russian
June 29 (Reuters) - The Russian rouble weakened past 87 against the dollar to a 15-month low on Thursday, hampered by domestic political risk concerns after an aborted mutiny over the weekend, with market uncertainty fuelling demand for safe-haven assets. By 0823 GMT, the rouble was 0.7% weaker against the dollar at 86.96 <RUBUTSTN=MCX> having hit 87.47, its weakest point since March 29, 2022. The rouble lost a key support factor on Wednesday as a month-end tax period that typically sees exporters convert foreign currency revenues to meet local liabilities passed. "As we expected, the rouble fell at the end of the tax period, quite sharply, by around 1.5%," said Alor Broker in a note. The rouble-based MOEX Russian index (.IMOEX) was 0.8% higher at 2,804.0 points.
Persons: Russian rouble, Yevgeny Prigozhin's, Vladimir Putin's, Brent, Alexander Marrow, Christina Fincher, Jason Neely Organizations: Capital, Thomson Locations: Russian, Russia, Ukraine, Moscow, Alor, Magnit
Additional data on single-family new home sales in May and home prices in April also indicated the housing market has been able to weather rising interest rates from the U.S. Federal Reserve. Morgan Stanley said on Tuesday it was now expecting the Fed to hike its key interest rate by 25 basis points in July, from an earlier estimate of a pause, raising its terminal rate forecast to 5.375%. The euro was up 0.49% to $1.0957 after climbing to $1.0976, the highest since June 22, after comments from ECB officials. Other ECB policymakers weren't anticipating clear evidenceinflation is easing enough that would enable the central bank to pause their interest rate hikes. The euro rose 0.84% against the yen at 157.830.
Persons: Christine Lagarde, Joseph Trevisani, Morgan Stanley, Shunichi Suzuki, Lagarde, Sterling, Jerome Powell, Andrew Bailey, Kazuo Ueda, Yevgeny Prigozhin, Vladimir Putin, Chuck Mikolajczak, David Evans, Alex Richardson Organizations: YORK, European Central Bank, greenback, U.S, Conference Board, U.S . Federal, Bank of Japan, Japan's Finance, ECB, Federal, Bank of England, Thomson Locations: U.S, Russian, Belarus
Finance Minister Shunichi Suzuki said on Tuesday: "We will closely watch currency market moves with a strong sense of urgency and will respond appropriately if the moves become excessive." Japan intervened to boost the yen last year when it weakened past the 145 per dollar level. "Euro-dollar is a bit stronger this morning, we had probably a bit of help from hawkish ECB (European Central Bank) comments this morning," said ING's Pesole. Latvian central bank governor and ECB official Martins Kazaks said in Portugal on Tuesday that the central bank will likely keep hiking interest rates after July. China's central bank set its daily yuan fixing stronger than market expectations for a second day in a row on Tuesday.
Persons: paring, Shunichi Suzuki, Francesco Pesole, ING's Pesole, Martins Kazaks, Kazaks, Christine Lagarde, Jerome Powell, Andrew Bailey, Kazuo Ueda, Lagarde, Vladimir Putin, Wagner, Sterling, Harry Robertson, Rocky Swift, Barbara Lewis, Conor Humphries, Chizu Organizations: Central, . Finance, Bank of Japan, ING, hawkish ECB, European Central Bank, ECB, Federal, Bank of England, Wednesday, Thomson Locations: TOKYO, Japan, Sintra, Portugal, Latvian, Russian, China, China's, London, Tokyo
TOKYO, June 27 (Reuters) - The U.S. dollar held firm against major currencies on Tuesday as tension simmered in Russia and traders looked ahead to U.S. data that may determine the timing of further interest rate hikes. The Russian rouble weakened 0.41% versus the dollar at 84.75 after hitting its weakest level since March 2022. Japan intervened to boost the yen last year when it weakened past the 145 per dollar level. U.S. data this week include new orders for durable goods, housing figures, and consumer surveys from The Conference Board and University of Michigan. If the U.S. economic data comes out on the strong side, then further pricing in for the two rate hikes will push up the dollar," Yamamoto said.
Persons: Vladimir Putin, Shunichi Suzuki, Masafumi Yamamoto, Yamamoto, Christine Lagarde, Sterling, Rocky Swift, Christopher Cushing, Barbara Lewis Organizations: U.S, Japanese Finance, Conference Board, University of Michigan, Federal Reserve, Mizuho Securities, European Central Bank, ECB, Central Banking, Thomson Locations: TOKYO, Russia, Russian, U.S, Sintra , Portugal, China, China's
NEW YORK, June 26 (Reuters) - The dollar rose against the rouble on Monday, although it was off the 15-month high hit earlier in the session, while the Japanese yen gained modestly against the greenback following comments from the country's top currency diplomat. The Russian rouble weakened 0.90% versus the greenback at 84.40 per dollar after hitting its weakest level since March 2022. Rouble opens at 15-month low vs dollarThe dollar was softer against the yen, after Vice Finance Minister for International Affairs Masato Kanda said Japan was not ruling out any options in possible responses to excessive currency moves. The Japanese yen strengthened 0.11% versus the greenback at 143.52 per dollar. The Bank of Japan last intervened in the yen when it traded around 145 per dollar.
Persons: Vladimir Putin, Yevgeny Prigozhin, Putin, Edward Moya, Rouble, International Affairs Masato Kanda, jawboning, Moya, Christine Lagarde, Sterling, Chuck Mikolajczak, Mark Heinrich Our Organizations: YORK, Russian, International Affairs, Bank of Japan, European Central Bank, ECB, Central Banking, Thomson Locations: New York, Russian, Japan, Sintra, Asia, China, Beijing
June 26 (Reuters) - The Russian rouble hit its lowest in nearly 15 months against the dollar on Monday before paring some losses, as investors responded for the first time to an aborted mutiny by heavily armed mercenaries in Russia over the weekend. By 0727 GMT, the rouble was 0.5% weaker against the dollar at 85.15 , after hitting 87.2300 in early trade, its weakest point since late March 2022. With the rouble not trading over the weekend, Russian banks had offered exchange rates well above the official rate beyond 90 to the dollar, but those were gradually easing as tensions subsided. Rouble opens at 15-month low vs dollarInvestors globally were watching for ripple effects from the aborted mutiny, with some expecting a move into safe havens such as U.S. government bonds and the dollar. The rouble-based MOEX Russian index (.IMOEX) was 1% lower at 2,767.9 points.
Persons: Yevgeny Prigozhin, Vladimir Putin's, Alexey Antonov, Rouble, Brent, Sinara, Alexander Marrow, Kim Coghill Organizations: Sinara Investment Bank, Thomson Locations: Russian, Russia, Rostov, Moscow, Alor, Washington
Asked if he thought the world was in a new Cold War, Kostin said that it was now a "hot war" that was more dangerous than the Cold War. VTB, Kostin said, was discussing using yuan in settlements with third countries. "We have already entered into a hot war," Kostin said of the crisis with Ukraine. The situation is worse than in the Cold War, it is very difficult and alarming." Asked if Russia's economy would remain a free economy, Kostin said: "I very much hope so."
Persons: Dado Ruvic, Andrei Kostin, Kostin, Vladimir Putin, Putin, VTB, Guy Faulconbridge, Mark Potter Organizations: REUTERS, U.S ., European Union, Reuters, U.S, JPMorgan, VEB, EU, West ., Monetary Fund, Thomson Locations: Russian, China, MOSCOW, Russia, Ukraine, United States, Moscow, Australia, Britain, Soviet Union
May 4 (Reuters) - The Russian rouble climbed to a more-than-one-month high on Thursday, gaining for a fifth straight session, as oil prices staged a partial recovery, countering the impact of reduced foreign currency supply. By 0923 GMT, the rouble was 1% stronger against the dollar at 78.44 , its strongest mark since April 3. The rouble has also benefited with a lag from high oil prices throughout April, which translates to higher export revenues for Russian exporters. Russian stocks are unlikely to see any serious buying interest before Russia's long weekend, said Sinara Investment Bank analysts. Geopolitics are partly to blame for Russian stocks' recent decline, while investors globally fear recession, hence the sustained drop in Brent, Sinara said.
April 27 (Reuters) - The rouble steadied on Thursday, with the market looking ahead to Friday's interest rate decision, as favourable month-end tax payments propped the Russian currency up amid a significant drop in oil prices. By 1322 GMT, the rouble was 0.2% stronger against the dollar at 81.44 and had gained 0.6% to trade at 89.76 versus the euro . Month-end tax payments that usually lead exporters to convert foreign currency revenue to meet local liabilities are putting a floor under the rouble. Oil prices dropped almost 4% on Wednesday, extending sharp losses from the previous session, driven by fears of a U.S. recession and an increase in Russian oil exports which dulled the impact of OPEC production cuts. "We still see no reason for the central bank to change the rate and its rhetoric, but inflation risks will continue to concern the central bank more than economic growth," said Dmitry Polevoy, head of investment at Locko-Invest.
India's oil trade, in response to the turmoil of sanctions and the Ukraine war, provides the strongest evidence so far of a shift into other currencies that could prove lasting. MTS had facilitated some Indian oil non-dollar payments, the trade sources said. An Indian refining source said most Russian banks have faced sanctions since the war but Indian customers and Russian suppliers are determined to keep trading Russian oil. "As it is, the government is not asking us to stop buying Russian oil, so we are hopeful that an alternative payment mechanism will be found in case the current system is blocked." Similarly, many banks from Russia have opened accounts with Indian banks to facilitate trade.
Russian rouble weakens ahead of Putin address to parliament
  + stars: | 2023-02-21 | by ( ) www.reuters.com   time to read: +2 min
At 0732 GMT the rouble was 0.7% weaker against the dollar at 75.05 , edging closer to an almost 10-month low of 75.30 hit on Friday. The Russian currency had lost 0.5% to 80.04 versus the euro and was down 0.2% against the yuan at 10.89. The rouble is usually in greater demand before month-end taxes are due on Feb. 28, when exporters typically convert their foreign currency revenue. Nevertheless, oil prices remain high and the rouble should be supported by exporters in the final third of February, Kochetkov added. Banks, have also proved resilient, with lenders now jostling for business from the state and the country's big corporate players.
Jan 16 (Reuters) - Russia's attempts to plug its budget deficit by selling foreign currency reserves could lead to a vicious circle that pushes the rouble higher and further reduces the Kremlin's crucial export revenues, analysts say. That process could trigger a cycle of weaker export revenues, requiring more foreign currency sales and leading to an even stronger rouble, exacerbating the budget hole. Finance minister Anton Siluanov said in December that the price cap imposed on its oil could mean Russia's budget deficit is wider than current plans for 2% of GDP in 2023. Government officials have also publicly said they would like to see a weaker rouble - something the foreign currency interventions seem likely to prevent. Russia's budget for this year is based on a Urals blend price of around $70.10 a barrel, though Russia's main blend is currently trading at around $50 a barrel.
Russian rouble up vs dollar, euro in light trade
  + stars: | 2023-01-05 | by ( ) www.reuters.com   time to read: +1 min
Jan 5 (Reuters) - The Russian rouble showed positive dynamics against the dollar and the euro amid a rebound in oil prices in thin holiday trading on Thursday. At 0711 GMT the rouble gained 1.3% against the dollar to trade at 71.06 on the Moscow Exchange. Against the euro, the rouble was up 0.85% to 75.50 . The rouble-based MOEX Russian index (.IMOEX) gained 0.04% to 2,169 points. Oil prices rebounded on Thursday amid dollar weakness and as investors emerged to buy dips after two sessions of steep losses, though economic concerns capped recovery read more .
Russian rouble down with oil prices, trade remains thin
  + stars: | 2023-01-04 | by ( ) www.reuters.com   time to read: +1 min
Summary This content was produced in Russia where the law restricts coverage of Russian military operations in UkraineMOSCOW, Jan 4 (Reuters) - The rouble opened weaker on Wednesday amid lower oil prices and thin trading volumes during public holidays in Russia. At 0714 GMT, the rouble was 0.6% weaker against the dollar at 71.54 and had lost 1.1% to trade at 75.64 versus the euro . Brent crude oil , a global benchmark for Russia's main export, was down 0.4% at $81.8 a barrel. The rouble-based MOEX Russian index (.IMOEX) was 0.2% higher at 2,176.77 points. For Russian equities guide seeFor Russian treasury bonds seeReporting by Polina Devitt; editing by Andrew HeavensOur Standards: The Thomson Reuters Trust Principles.
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