MOSCOW: The Russian ruble fell to its lowest level in nearly three weeks against the dollar on Monday after the support it received from month-end tax payments waned and daily sales of the Chinese yuan did little to prop up the Russian currency.
The ruble lost 1 percent against the dollar, reaching 70.18 by 1513 GMT, the lowest since Jan. 11.
The ruble also fell against the euro, 1.4 percent, to 76.53, its lowest level in three weeks, and it fell 1.2 percent against the yuan, to 10.39.
The ruble is usually supported by tax payments at the end of the month when exporters transfer foreign exchange earnings to pay domestic obligations.
According to a note from Phyllis Capital, “the Russian currency may lose tax period support this week and be vulnerable to further declines.”
The ruble is also being supported by the government’s foreign exchange sales of up to 3.2 billion rubles ($46 million) per day of Chinese yuan.
First Asset Management said in a note that these sales should support the ruble in the short term to compensate for the shortfall in oil and gas revenues, expecting it to trade in a range of 68-71 against the dollar in the near term.
The ruble has been under external pressure since Russia’s oil sales cap came into force in early December, along with an EU ban on Russian oil exports, forcing Moscow to sell at a discount.
($1 = 69.5955 rubles)
(Reuters)
