Russian rouble flat but set to weaken as tax payments end

The Russian rouble was flat against the US dollar on Wednesday but was set to weaken in the coming days against both the dollar and the yuan as exporting companies were expected to withdraw from the market after paying their rouble taxes.

At 0745 GMT, the rouble was flat at 91.50 to the dollar, according to LSEG data. The rouble fell as much as 9 per cent against the dollar earlier in August after Ukraine's surprise attack on Russia's Kursk region, before stabilising around current levels.

Trading in major currencies in Russia shifted to the over-the-counter (OTC) market, obscuring price data, after Western sanctions on the Moscow Exchange and its clearing agent, the National Clearing Centre, were introduced on June 12.

According to an analysis of the OTC market, the rouble weakened by 0.5 per cent to 11.84 against the Chinese yuan, which has become the most traded foreign currency in Moscow. The rouble strengthened by 3 per cent against the yuan in the last week.

Foreign currency sales by exporting companies to accumulate enough roubles to pay their taxes at the end of the month are a major factor affecting the currency market. The tax payments are due today.

One-day rouble-dollar futures, which trade on the Moscow Exchange and are a guide for OTC market rates, were up 0.1 per cent at 90.63. The central bank's official exchange rate, which it calculates using OTC data, was set at 91.48 to the dollar.

The rouble was 0.2 per cent stronger at 102.14 against the euro , according to LSEG data.

Brent crude oil, a global benchmark for Russia's main export, was down 0.1 per cent at $79.51 a barrel after a sharp drop in the previous session ended a three-day streak of gains, amid persistent concerns over potential supply losses from the Middle East.