Russian rouble hits one-month high vs dollar ahead of cenbank rate decision

Credit: REUTERS/MAXIM SHEMETOV

The Russian rouble firmed slightly in early trade on Friday, reaching a one-month peak against the dollar ahead of the central bank's board meeting where it is expected to hold interest rates unchanged.

MOSCOW, Oct 23 (Reuters) - The Russian rouble firmed slightly in early trade on Friday, reaching a one-month peak against the dollar ahead of the central bank's board meeting where it is expected to hold interest rates unchanged.

At 0747 GMT, the rouble was 0.2% stronger against the dollar at 76.47 RUBUTSTN=MCX after touching a level of 76.39, its strongest since Sept. 23.

Versus the euro, the rouble was 0.2% firmer to 90.39 EURRUBTN=MCX.

Russia's central bank is in focus as it is likely to keep its key rate at 4.25% ahead of the U.S. presidential election and following a slide in the rouble on concerns over geopolitical developments, a Reuters poll showed.

Sluggish economic performance and inflation below the target, however, keep the door open for a rate cut to 4%, some economists said.

The possibility that the central bank will hold the rate is just slightly higher than chances for a cut, VTB Capital said.

"Today's rate decision can impact the rouble only if we see an unexpected change in the regulator's position on the rate outlook," said Dmitry Polevoy, head on investment at Locko Invest

Central Bank Governor Elvira Nabiullina will shed more light on her bank's plans at an online media conference at 1200 GMT.

Russian stock indexes were up. The dollar-denominated RTS index .IRTS rose 0.4% to 1,159.5 points. The rouble-based MOEX Russian index .IMOEX was 0.4% higher at 2,813.7 points.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

(Reporting by Andrey Ostroukh; additional reporting by Elena Fabrichnaya; Editing by Angus MacSwan)

((andrey.ostroukh@thomsonreuters.com; +7 495 775 1242;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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