Russian rouble steadies after rally, stocks hit record high

Credit: REUTERS/MAXIM SHEMETOV

The Russian rouble steadied in light trade on Monday after climbing against the dollar last week to its strongest since July following the central bank's rate increase, while the benchmark MOEX stock index touched a fresh record high.

MOSCOW, June 14 (Reuters( - The Russian rouble steadied in light trade on Monday after climbing against the dollar last week to its strongest since July following the central bank's rate increase, while the benchmark MOEX stock index touched a fresh record high.

At 0755 GMT, the rouble little changed on the day at 72.16 versus the dollar RUBUTSTN=MCX, away from 71.55, a level it reached on Friday for the first time since July 27.

Trading on Monday is expected to be thin due to Russia's public holiday.

Russian stock indexes were up as benchmark Brent crude oil LCOc1 added 1% to $73.44 per barrel.

The dollar-denominated RTS index .IRTS was up 0.1% to 1,679.6 points. The rouble-based MOEX Russian index .IMOEX gained 0.2% to 3,848.1 points after hitting an all-time high of 3,857.21.

The central bank's decision to raise the key rate by 50 basis points to 5.5% and its promise of more hikes supported the rouble late last week.

Higher rates prop up the rouble by making it more attractive for carry trades in which investors borrow low-yielding currencies, such as the U.S. dollar, and convert them into roubles to buy high-yielding bonds.

The Russian currency has been on the mend in the past few weeks ahead of a meeting between U.S. President Joe Biden and Russia's Vladimir Putin on June 16 thanks to a recovery in prices for oil, Russia's key export.

Against the euro, the rouble shed 0.2% to 87.45 EURRUBTN=MCX.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

(Reporting by Andrey Ostroukh; editing by Jason Neely)

((andrey.ostroukh@thomsonreuters.com;))

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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