MOSCOW, 22nd May, 2024 (WAM) -- The Russian rouble climbed to its strongest since late January against the dollar on Wednesday, supported by high interest rates, capital controls and the state's increased sales of foreign currency this month, Reuters reported.
At 06.48 GMT (10.48 UAE time), the rouble was 0.2 percent stronger against the dollar at 89.95, earlier hitting 89.75, its strongest point since 31st January.
It had gained 0.1 percent to trade at 97.81 versus the euro and firmed 0.1 percent against the yuan to 12.40.
Capital controls introduced by presidential decree in October 2023 require dozens of undisclosed exporting firms to deposit a high percentage of foreign currency earnings with Russian banks and then sell most of those proceeds on the domestic market. The controls were extended by a year at the end of April.
The state's overall forex sales were sharply increased to 6.3 billion roubles (US$69.83 million) a day in May from 0.6 billion roubles a day in the previous month, further buttressing the Russian currency.
After three successive interest rate holds at 16 percent, the central bank has adopted a more hawkish stance ahead of its next meeting on 7th June, with inflation remaining stubbornly high.
Brent crude oil, a global benchmark for Russia's main export, was down 0.8 percent at $82.24 a barrel.