The Russian Ruble Started the Day Flat

The Russian ruble opened flat in trade on Friday, as exporters’ month-end tax payments kept the currency hovering at the benchmark 60-level against the US dollar.

The ruble currency was flat against the dollar at 61.13. Meanwhile, it fell 0.4% versus the euro to 55.64.

The ruble has been the world’s best-performing currency this year.  The central bank’s implementation of emergency capital limits to stem a huge sell-off boosted the currency.

Analysts believe the ruble is being supported this week by month-end tax payments, typically seeing Russian exporters convert their foreign currency gains into rubles to pay to the treasury.

The dollar-denominated RTS index fell 0.4% in the first minutes of trading in Moscow, sliding to 1,139.1 points. The MOEX Russian index in rubles was unchanged at 2,216.2 points.

On Friday, there were a few expected causes of change for either the Russian currency or stocks.

Due to the Christmas season, trading volumes are extremely low. Meanwhile, the external backdrop is not that awful. Confidence stays in the United States and Europe. Furthermore, markets are on hold as they await comments from United States Federal Reserve Chairman Jerome Powell at Jackson Hole later today.

Soaring energy prices in Europe due to Russia’s invasion of Ukraine have clouded economic prospects and weighed on the euro and pound.

Sterling sank as much as 0.4% to $1.17370 after British regulators verified 80% increases in consumer energy bills and warned of a “crisis” needing immediate government action.

The euro rose 0.4% to $1.1113 after failing to regain parity with the dollar this week after falling below the psychologically crucial level on Monday.

So far, Fed officials have been noncommittal about the extent of prospective interest rate rises in their speeches at the conference. Still, they have maintained that Fed would raise the rates to keep inflation at bay.