Rouble firms back past 84 to US dollar, stocks jump with gas saga in focus
[MOSCOW] The Russian rouble strengthened back past 84 to the US dollar on Thursday (Mar 31), and stocks jumped higher as some curbs on short selling were lifted, with the market focused on what Moscow's demand that its gas exports be paid for in roubles will mean.
By 1002 GMT, the rouble was 1.5 per cent stronger against the US dollar at 83.30, close to a more than 1-month high, and had gained 1.7 per cent to trade at 92.59 versus the euro .
The Russian currency is extending gains made last week after President Vladimir Putin demanded that natural gas exported to Europe be paid for in roubles, a move that has galvanised European countries into action.
"Investors are waiting for the resolution of the situation with rouble payments for Russian gas, and also, probably, other goods," Veles Capital analysts said in a note.
On Wednesday, 2 sources told Reuters that Russia planned to keep the contract currency for gas exports to Europe unchanged but would seek final payment in roubles as one of the options to switch the currency of gas trade, moves that may ease some traders' concerns.
Dynamics driving the rouble lately are to some extent artificial. The currency, which had been free-floating until late February, is now steered by capital controls, a ban on buying cash dollars and euros and other administrative measures.
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On the interbank market, rouble bids reached as strong as 75 against the US dollar in the previous session and were hovering around 82 on Wednesday. The rouble was at 82 to the US dollar on the EBS electronic platform.
STOCKS SURGE HIGHER
Russian stock indexes were higher. The central bank from Thursday lifted a ban on some short selling, but limited it to shares in 83 enterprises and only to banks and brokers.
On Thursday, the bank told Reuters a ban on the buying and selling of any securities between Russians and foreigners of"unfriendly" countries, imposed on Mar 1, was indefinite.
Moscow Exchange said trading in foreign securities would be relaunched once transfers between Russia's National Settlement Depository (NSD) and international clearing houses Euroclear and Clearstream, which are currently blocked, had been resolved.
"Foreign securities purchased by investors on the exchange are in safekeeping in the Russian jurisdiction," Moscow Exchange said.
The dollar-denominated RTS index was up 5.3 per cent at 999.7 points, at its highest since Feb 24, the day Russia sent tens of thousands of troops into Ukraine.
The rouble-based MOEX Russian index was 5.2 per cent higher, at 2,644.0 points.
Shares of energy giant Gazprom leapt 11.4 per cent. Shares in sanctioned lender VTB were 9 per cent higher, while flag carrier Aeroflot was losing 1.3 per cent on the day.
SPB Exchange, Russia's second-largest bourse, said it planned to resume trading in several securities of Russian companies with foreign primary listings, but not earlier than Apr 7.
Russia has spent 50.2 billion roubles (S$829 million) in coupons on 7 OFZ treasury bond issues, data on its website showed.
Yields on Russia's benchmark 10-year OFZ treasury bonds, which move inversely to prices, fell to 11.46 per cent, their lowest since Feb 22. REUTERS
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