Russian rouble firms with tax revenue, c.bank decision in sight

Kitco Media
By Anonymous
Published:
Updated:
Reuters
 (Updates prices, adds Kostin comments)
 By Alexander Marrow
 April 24 (Reuters) - The rouble firmed on Monday,
supported by the prospect of favourable tax payments this week,
offsetting lower oil prices and a general negative outlook as
the Russian market looks ahead to Friday's central bank rate
decision.
 By 1139 GMT, the rouble was 0.6% stronger against the dollar
at 81.23  and had gained 0.4% to trade at 89.41
versus the euro  . It had firmed 0.4% against the
yuan to 11.77  .
 The Russian currency accelerated a months-long slide in
early April, tumbling to a one-year low at 83.5 against the
dollar, on a lack of foreign currency in Russia and the sale of
Western businesses in the country.
 "Now the market... has calmed down," VTB Bank  CEO
Andrei Kostin said on state news channel Russia-24. "According
to our data, the population is now selling foreign currency more
than buying it." 
 The rouble is set to see support as this month's relatively
high oil prices boost export revenue, although prices have
dipped back towards $80 per barrel in recent sessions from highs
above $87. 
 On Monday, Brent crude oil  , a global benchmark for
Russia's main export, was down 0.3% at $81.45 a barrel.
 Weaker oil prices and talk of a near-total ban on exports to
Russia by Group of Seven (G7) countries were among the factors
creating a negative external backdrop on Monday, Otkritie
Research analysts wrote in a note. 
 "However, the rouble is strengthening in Monday's morning
hours thanks to demand from exporters ahead of tax payments,"
they said. 
 The rouble is expected to gain support from month-end tax
payments that usually lead exporters to convert foreign currency
revenue to meet local liabilities. Those taxes are due on AprilЄ.
 Also on April 28, the central bank meets on rates.
Inflationary risks in Russia must decrease in order to create
room for interest rate cuts, Central Bank Governor Elvira
Nabiullina said last week, retaining the bank's hawkish stance
and the likelihood of another rate hold at 7.5%.
 Russian stock indexes were higher.
 The dollar-denominated RTS index  was up 0.6% toe,025.5 points. The rouble-based MOEX Russian index  wasd.2% higher at 2,643.9 points, earlier touching a more than
one-year high.

 For Russian equities guide see  
 For Russian treasury bonds see  

 (Reporting by Alexander Marrow; additional reporting by Elena
Fabrichnaya; editing by Jason Neely and Susan Fenton)
 ((alexander.marrow@thomsonreuters.com))
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