The Russian rouble firmed slightly on Tuesday, pulling away from its lowest in nearly a week against the dollar and back past the 90 mark on support from capital controls, month-end corporate tax payments and high interest rates.
The Bank of Russia said its rate hiking cycle may be near completion as it raised its key interest rate by 100 basis points to 16% on Friday, increasing borrowing costs for the fifth consecutive meeting in response to stubborn inflation.
At 0705 GMT the rouble was 0.4% stronger against the dollar at 89.74 and had gained 0.3% to trade at 98.18 versus the euro. It had firmed 0.5% against the yuan to 12.53.
"The rouble ... is for now continuing to consolidate around the 90 mark," said Alor Broker's Alexei Antonov, though he expects the rouble to weaken in the near future.
"Very often, after periods of calm, strong movement follows," he said.
Since October and the rouble's most recent slide to 100 against the dollar, a presidential decree forcing exporters to convert some foreign currency revenue has provided support.
The rouble should also gain a boost from month-end tax payments, which usually prompt exporters to convert foreign currency revenue to pay local liabilities.
But the rouble can struggle in December as citizens tend to buy foreign currency in advance of Russia's long New Year holidays in January.
Brent crude oil, a global benchmark for Russia's main export, was up 0.1% at $78.0 a barrel.
Russian stock indexes were higher.
The dollar-denominated RTS index was up 0.7% at 1,083.2 points. The rouble-based MOEX Russian index gained 0.3% to 3,086.5 points.
