The Russian rouble steadied today, hovering not far from a two-week high hit in the previous session and it is set to gain more than 6% in what has been one of its most volatile weeks all year, with the market on alert for capital controls.
The Bank of Russia increased its key rate to 12% on Tuesday, an emergency attempt to halt the rouble's recent slide past the symbolic 100 to the US dollar threshold.
Though analysts said more measures may be needed to return the rouble to the 80-90 range authorities have deemed acceptable, subsequent reports that capital controls may be reintroduced seem to have had the desired effect.
The rouble was 0.1% stronger against the dollar at 93.68 this morning, nearing 92.55, its strongest mark since August 2, hit on Thursday.
It had lost 0.2% to trade at 101.91 versus the euro and shed 0.4% against the yuan to stand at 12.82.
Authorities are discussing bringing back the compulsory sale of foreign currency revenues for exporters, five sources told Reuters. Beyond rate increases and capital controls, Moscow has some other options, though none particularly favourable.
Two sources subsequently told Reuters that foreign exchange sales were being increased informally, with exporters being told to sell as much as possible and provide weekly updates.
Also playing in the rouble's favour is the approaching beginning of a month-end tax period that usually sees exporters convert foreign exchange revenues into roubles to pay domestic liabilities.
"We believe exporters' increase activity will continue today and expect a further recovery in rouble positions," said Promsvyazbank analysts in a note.
Moscow Exchange, Russia's largest bourse, said August 15 - the day of the central bank's rate hike - was the most active trading day on Russia's derivatives market since Russia's full-scale invasion of Ukraine in February 2022.
Brent crude oil, a global benchmark for Russia's main export, was up 0.2% at $84.29 a barrel.
