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Russian rouble pares gains after hitting one-month high vs dollar

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MOSCOW — The rouble touched a one-month high against the dollar in early trade on Monday before paring gains in a volatile start to the session, as oil prices fell and investors assessed the impact of the Bank of Russia’s rate cut to 7.5% on Friday.

The 50 basis-point cut had been predicted by analysts, but Governor Elvira Nabiullina suggested that the central bank’s rate-cutting cycle may be close to an end as inflationary expectations rise and omitted guidance about studying the need for future cuts.

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At 0733 GMT, the rouble was steady against the dollar at 60.26, after touching 59.0025 in early trade, its strongest mark since Aug. 19.

It had lost 0.6% to trade at 60.16 versus the euro and firmed 0.2% against the yuan to 8.566 .

Brent crude oil, a global benchmark for Russia’s main export, was down 0.8% at $60.65 a barrel.

The rouble has been the world’s best-performing currency https://emea1.apps.cp.thomsonreuters.com/Apps/NewsServices/mediaProxy?apiKey=6d416f26-7b24-4f31-beb6-1b5aa0f3fafb&url=http%3A%2F%2Ffingfx.thomsonreuters.com%2Fgfx%2Frngs%2FGLOBAL-CURRENCIES-PERFORMANCE%2F0100301V041%2Findex.html this year, buoyed by emergency capital controls rolled out by the central bank in a bid to halt a mass sell-off.

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“In the course of trading we expect the rouble to try and strengthen,” said Banki.ru chief analyst Bogdan Zvarich, pointing to a month-end tax period that usually sees Russia’s exporters convert their foreign currency earnings into roubles to pay to the treasury, the peak of which falls on Sept. 26.

“As a result, there will be an increased supply of foreign currency on the market, which will contribute to the rise of the rouble.”

Russian stock indexes were higher.

The dollar-denominated RTS index was up 0.5% to 1,281.3 points. The rouble-based MOEX Russian index was 0.7% higher at 2,449.2 points.

For Russian equities guide see

For Russian treasury bonds see

(Reporting by Alexander Marrow, editing by Ed Osmond)


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