Rouble at fresh high

Mar 26th, 2010 | By | Category: Rouble News

The rouble hit a fresh multi-month peak today, in line with its almost daily trend of doing so, in expectation of a rate cut by the Russian central bank.

At 7.41 GMT, the currency was trading at 33.92 versus the euro-dollar basket, its highest level since the end of December 2008. This is only 2 kopecks below what is presumed to be the level at which the central bank will intervene.

The Russian regulator maintains the rouble within a floating band, allowing it to move gradually by shifting the lower boundary by 5 kopecks for each US$700 of currency purchased. Since the middle of last month, the regulator has moved the band on 22 occasions. Dealers say that the band is now at 33.90-36.90.

The latest strengthening of the rouble came with market expectation that the central bank is about to cut interest rates. Strong oil prices, still over US$80 per barrel, also helped to strengthen the currency, with oil being one of Russia’s chief exports.

The rouble is currently trading at 39.34 against the euro, a new 15-month high, and against the dollar it is trading at 29.51, a slight fall.

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