UPDATE 1-Rouble firms, Russian stocks hit near 6-month high

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates prices, adds yuan details, OFZ) By Alexander Marrow March 9 (Reuters) - The rouble strengthened on Thursday as traders increased appetite for risk when the market reopened after a holiday and rising oil prices helped Russia's benchmark stock index hit a near six-month high.


By 1446 GMT, the rouble was 0.2% stronger against the dollar at 75.86 . The Russian market had been closed on Wednesday to mark International Women's Day.


The dollar was firmer globally following Federal Reserve Chairman Jerome Powell's hawkish guidance on further interest rate increases.


The rouble had gained 0.5% to trade at 80.22 versus the euro . It had firmed 0.1% against the yuan to 10.87 . The finance ministry this week decreased its daily foreign exchange sales, in China's yuan, to 5.4 billion roubles ($71.05 million) for the upcoming month, down from 8.9 billion roubles, which should reduce support for the rouble. The share of China's yuan in Russia's import settlements in 2022 jumped to 23% from 4%, Russia's central bank said on Thursday, also noting a rise in the yuan's share in exchange trading in February.


Yields on Russia's rouble-denominated OFZ treasury bonds hit over one-week lows, but demand was relatively subdued. Bond yields move inversely to their price.


The market is likely to consolidate at current levels until the central bank's next rate-setting meeting on March 17, Promsvyazbank analysts said.


Brent crude oil , a global benchmark for Russia's main export, was up 1.3% at $83.7 a barrel.


Russian stock indexes were lower. The dollar-denominated RTS index was 0.1% lower at 950.4 points. The rouble-based MOEX Russian index was down 0.3% at 2,288.8 points, earlier touching 2,302.10 points, its strongest since Sept. 20, 2022.


Shares in dominant lender Sberbank were 0.3% lower, after the bank reported a nearly 80% drop in 2022 as sweeping Western sanctions rattled Russia's financial sector in what the bank's chief executive called "the most difficult year". For Russian equities guide see For Russian treasury bonds see ($1 = 76.0000 roubles) (Reporting by Alexander Marrow; editing by Robert Birsel and Angus MacSwan)

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