Rouble weakens as tax period passes and lower FX inflows weigh

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 2 (Reuters) - The Russian rouble drifted lower on Thursday, as it lost the support of month-end tax payments and faced pressure from potentially weaker foreign currency inflows due to Western restrictions on energy exports. Russia's current account surplus soared to a record high last year as imports fell and energy exports kept foreign money flowing, but that surplus shrank more than half in January due in part to sanctions and embargoes on Russian oil. Less foreign currency in the economy means that surplus will continue to shrink, putting pressure on the rouble. The rouble was 0.47% weaker against the dollar at 75.51?? by 08:00 GMT, and edged down 0.07% against the euro to 80.26. Against the Chinese yuan , the rouble was up 0.11% at 10.90??. Brent crude oil , a global benchmark for Russia's main export, fell 0.33% to $84.03 a barrel. "The rouble fell by 0.25% against the dollar yesterday and continues to decline this morning. It is possible that the dollar-rouble pair is looking for a new equilibrium," said Alexey Antonov from Alor Broker. The rouble may try to fluctuate in a band between 74-76 against the dollar, he said. The rouble has also lost the support of increased demand from exporters, who convert their foreign currency revenue to pay month-end taxes. Russian stock markets were mixed. The dollar-denominated RTS index was down 0.31% at 952.87, while the rouble-based MOEX Russian index was up 0.17% at 2,283.53.? (Reporting by Caleb Davis; editing by John Stonestreet)
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