Russian Rouble Stable as Tax Payments Offset Low Oil Prices

Bullion Bite

As global oil prices fell, the Russian rouble stabilised due to favourable month-end tax payments, which countered the impact of a significant drop in oil prices. The rouble strengthened by 0.2% against the dollar to 81.44 and gained 0.6% to 89.76 versus the euro. The rouble has been hit by a drop in oil prices, which is a primary source of income for Russia. Nevertheless, the tax period allowed the rouble to withstand external pressure. Brent crude oil, a global benchmark for Russia's primary export, edged up 0.1% to $77.75 per barrel, just off the one-month low hit in the previous session. Friday's interest rate decision by the central bank is eagerly awaited, with the market expecting the bank to hold rates at 7.5% as weekly consumer prices rose marginally last week, cementing expectations for monetary easing. Dmitry Polevoy, head of investment at Locko-Invest, said inflation risks would concern the central bank more than economic growth.

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