Rouble gains against dollar, euro as possible Russia default looms

MOSCOW: The Russian rouble pared early losses to gain against the dollar on Wednesday and headed back towards a five-year high against the euro, as some gas buyers in Europe sought to meet Russia’s demand for rouble payment and sovereign default risk resurfaced, Reuters reported.

The rouble has become the best-performing currency this year despite a full-scale economic crisis, artificially supported by controls that Russia imposed in late February to shield its financial sector after it sent tens of thousands of troops into Ukraine.

By 1027 GMT, the rouble was 0.4 per cent stronger against the dollar at 63.33 , not far from the 62.6250 level reached on Friday, its strongest since early February 2020.

It had gained 0.9 per cent to trade at 66.45 versus the euro , edging back towards its strongest level since mid-2017 of 64.9425, which it touched last week.

The rouble’s rally to multiyear highs was slowed this week as the central bank raised the ceiling for cross-border transactions, allowing Russian residents and non-residents from friendly states to channel foreign currency abroad at an amount equivalent to up to $50,000 a month. The previous limit was $10,000.