MOSCOW: The Russian rouble strengthened further against the US dollar and China’s yuan on Thursday, regaining almost 9% after hitting a 32-month low on Nov. 27 following new US sanctions against Russia’s financial sector.
By 0800 GMT the rouble was up 0.4% at 104.60 against the dollar, according to over-the-counter market data from banks.
The rouble strengthened against China’s yuan by almost 1% in trade at the Moscow Stock Exchange.
The new US sanctions hit Gazprombank, Russia’s third largest lender, which handles payments for energy trade with Europe, disrupting foreign trade transactions and the supply of foreign currency to the Russian market.
“Market participants are waiting for the adjustment of settlement mechanisms for exports, which were disrupted after the introduction of new sanctions,” BCS brokerage analysts said.
The central bank has stopped buying foreign currency until the end of the year to ease pressure on financial markets.
The deferred purchases will be carried out next year.
Trade in dollars and euros moved to the over-the-counter market after Western sanctions in June targeted the Moscow Stock Exchange.
Russian rouble strengthens as volatility eases
The central bank sets an official exchange rate for both currencies based on data directly supplied by banks.
One-day rouble/dollar futures, which trade on the Moscow Stock Exchange and are a guide to the over-the-counter exchange rate, were down 0.6% to 104.46.
The central bank set an official exchange rate at 104.24 to the dollar.
American Dollar Exchange Rate