Rouble climbs to March 2020 levels vs euro, stocks up

div classBodysc17zpet90 cdBBJodivpReuters – The Russian rouble extended gains in early Moscow trade on Thursday, supported by monthend tax payments that led to increased conversion of foreign currency into roubles, while stock indexes posted solid gains.p

pMovements on the Russian market are partly artificial as the rouble is propped up by capital controls, while stocks are trading with a ban on short selling and with foreign players being barred from ditching shares in Russian companies without permission.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pAt 0737 GMT, the rouble was 0.3 stronger against the dollar at 72.59 after hitting 72 in light trade on the Moscow Exchange. Against the euro, it hit 74.3525, a level last seen in early March 2020 before retreating to trade 0.5 softer at 75.75.p

pThe Russian currency is expected to swing within the range of 7173 to the greenback, Promsvyazbank analysts said in a note.p

pThe rouble has firmed in the past few days as exportfocused companies were selling their foreign exchange revenues to meet local liabilities that could exceed 3 trillion roubles 41.24 billion this month, according to analysts surveyed by Reuters.p

pThe rouble has fully recovered to levels seen before Feb. 24, when Russia started what it calls “a special military operation” in Ukraine that led to unprecedented western sanctions, including a freeze on Russias reserves.p

pOn the bond market, yields on 10year benchmark OFZ treasury bonds stabilised near 10.13 ahead of Fridays central bank ratesetting meeting.p

pThe Bank of Russia is expected to cut its key interest rate by 200 basis points to 15 as it tries to stimulate more lending in the economy in the face of high inflation, a Reuters poll suggested earlier this week. p

pRussian stock indexes were up. The dollardenominated RTS index rose 2.2 to 1.072.0 points, while its roublebased peer MOEX was 1.9 higher at 2,470.7 points.p

pFor Russian equities guide seep

pFor Russian treasury bonds seep

p1 72.7410 roublesp

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pp Reporting by Reuters Editing by Emelia SitholeMatarisep

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