MOSCOW (Reuters) – The Russian ruble fell against the U.S. dollar on Monday as rising oil prices and increased state currency sales softened the impact of new U.S. sanctions aimed at curbing Russian oil and gas revenues.
The ruble fell 0.7% to 102.45 against the dollar by 1000 GMT, over-the-counter market data showed. The ruble weakened 0.8% to 13.81 against the yuan in trading on the Moscow Stock Exchange (MOEX).
The yuan has become the most traded foreign currency in Russia, with China using it to pay for energy imports from Russia.
The US Treasury Department on January 10 imposed sanctions on Russian oil producers Gazprom (MCX:) Neft and Surgutneftegaz, as well as 183 ships that shipped Russian oil. Oil prices have since risen to above $81 per barrel, the highest level in more than four months. [O/R]
The ruble was supported by a finance ministry announcement on Friday that implied state net currency turnover would rise by almost a third to 4.76 billion rubles ($46.42 million) per day from January 15.
Under a complex system of foreign currency transactions, the central bank buys and sells forex to maintain supplies in the domestic market and to act on behalf of the Ministry of Finance, which runs the Rainy Day National Wealth Fund (NWF). manages.
The central bank cannot buy and sell dollars and euros due to Western sanctions, making the yuan the clear choice for currency interventions.
The central bank supported the ruble last December by postponing foreign currency purchases on behalf of the Finance Ministry. The ruble reached its lowest level in about 2.5 years in November in response to the previous US sanctions package.
Since then, the currency has regained some of the lost ground and stabilized around $100 against the US dollar, a level that the market sees as a new equilibrium.
Analysts said expectations about talks between Russia and the US, fueled by the new administration, also supported the ruble.
“Geopolitics will remain the main factor affecting the ruble exchange rate for the foreseeable future,” T-Bank analysts said.
One-day ruble/dollar futures, which trade on MOEX and provide a guide to the over-the-counter exchange rate, rose 0.5% to 103.53. The Russian central bank has set the official exchange rate at 101.91.
($1 = 102.5500 rubles)
