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MOSCOW, Aug 17 (Reuters) – The Russian ruble strengthened on Wednesday to hit a one-week high against the euro, boosted by upcoming tax payments that typically boost demand for the Russian currency, while stock market indices have risen.
As of 07:27 GMT, the ruble had gained 0.7% to trade at 61.67 against the euro, earlier hitting a one-week high of 61.60. It strengthened 0.3% against the dollar to 60.72.
The ruble is the best-performing currency in the world this year thanks to capital controls and should soon find more support thanks to month-end tax payments which generally encourage export-oriented companies to convert part of their foreign currency income.
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The ruble is expected to trade between 60 and 62 against the dollar until exporters become more active in paying taxes, Promsvyazbank analysts said in a note.
The ruble’s volatility has declined recently after wild swings took it to a record high of 121.53 against the dollar on the Moscow Stock Exchange in March, days after Russia sent tens of thousands of troops to Ukraine on Feb. 24, before rallying in June to a seven-year peak rate of 50.01.
Trade restrictions on Russian markets are gradually easing. The Moscow Stock Exchange (MOEX.MM) has allowed investors from “friendly” jurisdictions, or those that had not imposed sanctions on Russia, to start trading in the derivatives market after a nearly six-month hiatus . Read more
This decision does not apply to the main stock market, but since Monday the Moscow Stock Exchange has allowed non-residents of “friendly” countries to trade in bonds. Read more
“A positive factor now is the fact that with the return of non-resident investors to the debt market, there has been no overselling,” Alfa Capital said.
Russian stock indices were climbing.
The dollar-denominated RTS index (.IRTS) rose 1% to 1,153.1 points, its highest since the end of July. Russia’s ruble-based MOEX index (.IMOEX) rose 0.7% to 2,222.9 points, a high in more than five weeks.
For the guide to Russian stocks, see
For Russian Treasury bonds, see
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Reporting by Alexander Marrow; Editing by Clarence Fernandez
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