Russian rouble rebounds vs dollar, stays at two-year low

Reuters11-25 17:15

MOSCOW, Nov 25 (Reuters) - The Russian rouble rebounded slightly against the U.S. dollar on Monday but remained at a two-year low on new U.S. sanctions on the banking sector and the launch of a new hypersonic missile by Russia last week.

By 0900 GMT, the rouble was up 0.8% at 103.50 against the dollar, according to LSEG data. On Friday the rouble hit 104.35, its weakest mark since March 23, 2022.

The rouble weakened by over 1% against the yuan to 14.19 in Moscow Exchange trade, also the lowest level since March 2022, and was flat at 108.71 to the euro .

BCS brokerage analysts said they expected some verbal interventions from the central bank and the government to prevent the further slide of the rouble, which was fuelling inflation and making the current monetary tightening less effective.

"Against the backdrop of the devaluation, we have a pro-inflationary spiral. Financial authorities may resort to at least verbal interventions, and over time this could contribute to the stabilisation of the rouble," they said.

The rouble's official exchange rate, set by the central bank using over-the-counter data, was set at 102.58 to the dollar.

The Russian currency is expected to receive some support this week from sales of foreign currency by exporting companies ahead of tax payments.

Brent crude oil , a global benchmark for Russia's main export, eased 0.56% to $74.75 on Monday after rising 6% last week on rising tensions between Western powers and major oil producers Russia and Iran.

(Reporting by Gleb Bryanski, editing by Timothy Heritage)

((gleb.bryanski@thomsonreuters.com;))

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