Russian rouble stronger with oil as rally continues

MOSCOW: The Russian rouble firmed early on Monday, helped by higher oil prices and building on strong gains last week.

At 0725 GMT, the rouble was 1.1 per cent stronger against the dollar at 61.17 and had gained 1.1 per cent to 69.55 versus the euro.

Brent crude oil, a global benchmark for Russia's main export, was up 0.7 per cent at $53.0 a barrel.

The Russian currency rose by over 6 per cent against the dollar last week, mainly because of a rally in oil prices.

That has prompted speculation that the central bank could resume its forex purchases to replenish its reserves if the rouble strengthens to below 60 roubles per dollar.

"We as before consider one of the main risks to a further strengthening of the rouble the possibility of the central bank resuming interventions," Rosbank analysts said in a note, adding however that the central bank was unlikely to intervene before its next monetary policy meeting on October 30.

Russian share indexes moved higher on Monday, also lifted by oil and positive sentiment on global markets.

The dollar-denominated RTS index was up 0.7 per cent to 892 points, while the rouble-based MICEX was 0.3 per cent higher at 1,732 points.