# Rouble falls past 61 vs dollar as conversion of depository receipts begins
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-15
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Rouble Weakens Past 61 to the Dollar amidst Share Conversion
Meta Description: Discover the latest on the rouble's decline past 61 to the dollar, Moscow stock market updates, GDR conversion, and bond market re-entry for foreign
URL: https://financedigest.com/rouble-falls-past-61-vs-dollar-as-conversion-of-depository-receipts-beginshtml

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MOSCOW (Reuters) -The rouble slid past 61 to the dollar on Monday as the conversion of depository receipts in Russian companies to local shares got underway, and as foreign investors from designated “friendly” countries were able to return to the bond market.

At 1029 GMT, the rouble was 1.5% weaker against the dollar at 61.49, leaving the narrow range between 59.45 and 61.45 where it had spent nine trading session in a row.

It eased 0.2% to 62.44 against the euro.

Rouble volatility has declined recently after wild swings which saw it [hit a record low of 121.53 to the dollar](https://www.financedigest.com/pound-hits-10-month-peak-euro-up-as-dollar-under-pressure.html "Pound hits 10-month peak, euro up as dollar under pressure") on the Moscow Exchange in March, days after Russia sent tens of thousands of troops into Ukraine on Feb. 24, and then [rally to a seven-year peak](https://www.financedigest.com/world-stocks-rally-nikkei-closes-at-33-year-peak.html "World stocks rally, Nikkei closes at 33-year peak") of 50.01 in June.

The rouble is expected to find [support from month-end tax payments that usually prompt export-focused companies to convert part](https://www.financedigest.com/51-of-brits-support-teresa-may-and-would-grant-access-to-their-personal-communication-and-internet-browsing-history-as-part-of-the-snoopers-charter.html "51%* of Brits support Teresa May and would grant access to their personal communication and internet browsing history as part of the Snooper’s Charter ") of their foreign currency revenues.

On [stock markets](https://www.financedigest.com/bitcoin-falls-to-22-month-low-as-stock-markets-tumble.html "Bitcoin falls to 22-month low as stock markets tumble"), the dollar-denominated RTS index fell 1.4% to 1,100.2 points, while the rouble-based MOEX Russian index was flat at 2,147.6 points.

Market [moves were relatively muted despite analysts predicting an increase in selling pressure as Russia starts the conversion of global](https://www.financedigest.com/analysis-at-world-cup-saudi-crown-prince-moves-back-on-to-global-stage.html "Analysis-At World Cup, Saudi crown prince moves back on to global stage") depository receipts (GDRs) into shares.

GDRs of [Russian companies that were traded on foreign exchanges and held in Russian depositories will be converted into shares](https://www.financedigest.com/permitted-share-of-chinas-yuan-in-russian-wealth-fund-doubled-to-60-finance-minister.html "Permitted share of China’s yuan in Russian wealth fund doubled to 60% -Finance Minister") on the Moscow Exchange from Aug. 15 in an effort to reduce foreign control over such companies amid [Western sanctions](https://www.financedigest.com/explainer-how-western-sanctions-will-target-russia.html "Explainer-How Western sanctions will target Russia").

The [central bank](https://www.financedigest.com/dollar-skulks-at-eight-month-low-central-bank-meetings-in-focus.html "Dollar skulks at eight-month low, central bank meetings in focus") said on Monday that the Russian depositories, which currently hold GDRs, will write them off from the holders’ accounts and credit the shares of Russian issuers instead. The whole process will take up to three weeks, the [central bank](https://www.financedigest.com/testing-waters-hungarys-central-bank-flags-cut-in-top-end-of-rate-corridor.html "Testing waters, Hungary’s central bank flags cut in top end of rate corridor") said.

Depositary receipts start being converted to equities today, which could create a supply overhang and make it difficult for the [stock market to rise,”](https://www.financedigest.com/wall-st-stocks-fall-bond-yields-rise-as-china-drops-quarantine-rule.html "Wall St stocks fall, bond yields rise as China drops quarantine rule") Promsvyazbank analysts said, forecasting a slide in the MOEX index to below 2,100 points.

From Monday, Moscow Exchange will also allow non-residents from designated “friendly” countries that have not imposed sanctions against [Russia to trade bonds](https://www.financedigest.com/pimco-cut-big-position-in-russia-cds-by-adding-bonds-in-q2.html "PIMCO cut big position in Russia CDS by adding bonds in Q2").

We do not [expect this to have a significant impact on the FX market,”](https://www.financedigest.com/bio-plastics-market-expected-at-a-cagr-of-28-8-us-43-8-billion-during-the-forecast-period-2014-2020.html "Bio-plastics Market expected at a CAGR of ~ 28.8% & US$ 43.8 billion during the forecast period 2014–2020") Sberbank CIB analysts said.

[Yields on benchmark 10-year OFZ treasury](https://www.financedigest.com/stocks-fall-treasury-yields-rise-upon-final-2022-trading-day.html "Stocks fall, Treasury yields rise upon final 2022 trading day") bonds nodded lower to 9.16% from Friday’s close of 9.18%.

(Reporting by Andrey Ostroukh; Editing by Kirsten Donovan and Jan Harvey)


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