# Russian rouble firms towards 60 vs dollar, stocks up
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-29
Category: TRADING
Category URL: https://financedigest.com/category/trading
Meta Title: Rouble gains against dollar as demand grows for Russian
Meta Description: Stay updated on the recent surge in the Russian rouble and stock market indexes, with insights on currency trends and economic indicators.
URL: https://financedigest.com/russian-rouble-firms-towards-60-vs-dollar-stocks-uphtml

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MOSCOW (Reuters) -The rouble firmed towards 60 against the dollar on Monday, supported by the last month-end tax payments that boost demand for the Russian currency, while stocks clipped a two-month high.

At 1317 GMT, the Russian currency gained 0.5% to 60.19 against the dollar. After a wild swing at the market open, the rouble was up 0.8% to trade at 60.17 versus the euro.

The rouble spent most of August near the 60 mark to the dollar as its volatility has subsided after it [hit](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") a record low of 121.53 to the dollar in Moscow trade in March, soon after Russia sent tens of thousands of troops into Ukraine. It then [rallied to its strongest in seven years](https://www.financedigest.com/u-s-dollar-rallies-to-more-than-2-year-hike-on-steep-fed-rate-hike-outlook.html "U.S. dollar rallies to more than 2-year hike on steep Fed rate hike outlook") of 50.01 in June.

Analysts at Promsvyazbank said the rouble was expected to ease towards 61 to the greenback amid repair works at the [Nord Stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") 1 gas pipeline from Russia to Europe.

Russia has [cut flows through Nord Stream 1 to just 20% of capacity and plans to shut it down entirely for three days next week](https://www.financedigest.com/meta-plans-to-cut-thousands-of-jobs-as-soon-as-this-week-bloomberg-news.html "Meta plans to cut thousands of jobs as soon as this week – Bloomberg News"), citing maintenance issues with turbines. The European Union accuses it of using gas as a weapon to [fight back](https://www.financedigest.com/2016-the-fight-back-of-the-established-brand.html "2016 – THE FIGHT BACK OF THE ESTABLISHED BRAND") against Western sanctions over Ukraine.

Remarkably, the national currency does not react much to a complete suspension of [Nord Stream](https://www.financedigest.com/new-intelligence-points-to-pro-ukraine-group-in-nord-stream-attack-nyt.html "New intelligence points to pro-Ukraine group in Nord Stream attack -NYT") 1 – apparently the current account surplus is so large that even this event is incapable of having any significant impact on the situation,” said Alexander Dzhioyev, an analyst at Alfa Capital.

Russia’s current [account surplus – the difference in value](https://www.financedigest.com/iris-acquisition-enables-accountants-to-add-greater-value-to-their-clients.html "IRIS acquisition enables accountants to add greater value to their clients") between exports and imports – more than tripled year-on-year in the first seven months of 2022, to a record $166.6 billion, as revenues soared while sanctions caused imports to plunge.

So far this year, the rouble has been the world’s best-performing currency https://emea1.apps.cp.thomsonreuters.com/Apps/NewsServices/mediaProxy?apiKey=6d416f26-7b24-4f31-beb6-1b5aa0f3fafb&url=http%3A%2F%2Ffingfx.thomsonreuters.com%2Fgfx%2Frngs%2FGLOBAL-CURRENCIES-PERFORMANCE%2F0100301V041%2Findex.html, buoyed by emergency capital controls rolled out by the [central bank](https://www.financedigest.com/stock-pickers-reckon-its-time-to-move-on-from-central-banks.html "Stock pickers reckon it’s time to move on from central banks") in a bid to halt a mass sell-off. This helped to avoid economic meltdown that many critics had predicted.

First Deputy [Prime Minister](https://www.financedigest.com/factbox-who-will-replace-uk-prime-minister-boris-johnson.html "Factbox-Who will replace UK Prime Minister Boris Johnson?") Andrei Belousov said on Monday that economic contraction this year will be slightly more than 2% compared to earlier government predictions that it could shrink by more than 12%.

Volatility in the rouble may soon increase again. Moscow Exchange will stop accepting [dollars as collateral to underwrite transactions from today and intends to restart early morning trading](https://www.financedigest.com/oil-prices-ease-to-trade-near-2-month-lows-on-china-demand-fears-dollar-strength.html "Oil prices ease to trade near 2-month lows on China demand fears, dollar strength") in September. 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") has also eased FX restrictions for banks.

[Russian stock](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") indexes were climbing.

The rouble-based MOEX Russian index was 0.9% higher at 2,288.4 points, its highest point [since June](https://www.financedigest.com/ukraine-war-energy-crisis-send-german-business-sentiment-to-lowest-level-since-june-2020.html "Ukraine war, energy crisis send German business sentiment to lowest level since June 2020") 30\. The dollar-denominated RTS index was up 1.2% to 1,197.0 points.

(Reporting by Alexander Marrow and Andrey Ostroukh; Editing by Christina Fincher)


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