Rouble slips from one-month high as Putin seeks response from West

  • 12/23/2021
  • 00:00
  • 5
  • 0
  • 0
news-picture

MOSCOW, Dec 23 (Reuters) - The rouble hit its strongest level in more than a month against the dollar on Thursday before paring some gains as President Vladimir Putin sought an immediate response from the United States and its allies to Russia"s demands for security guarantees. Putin, speaking at his annual news conference, said Russia had received a generally positive initial response to security proposals it handed to the United States this month designed to defuse the current crisis over Ukraine and that he was hopeful about the prospect for negotiations next year. But Putin grew more heated when recalling how NATO had "brazenly tricked" Russia with successive waves of expansion since the Cold War, and said Moscow needed an answer urgently. read more By 1445 GMT, the rouble was up 0.4% against the dollar at 73.48, earlier touching 73.1850, its strongest level since Nov. 22. It gained 0.6% to trade at 83.03 versus the euro , earlier hitting a more than one-week high. Ukraine is at the centre of East-West tensions after the United States and Kyiv accused Russia of preparing a new attack on its southern neighbour, an allegation Moscow denies. "On the geopolitical front, the West and Russia are standing their ground, even ratcheting up the war of words; however, headlines brought a ray of hope – the U.S. has signalled a willingness to start talks with Russia next month," BCS Global Markets said in a note. read more Risk appetite has also improved, with investors more optimistic over the global economic recovery after data on Wednesday showed a better-than-expected uptick in U.S. consumer confidence and as some concerns over the severity of the Omicron coronavirus variant eased. read more A tax period that usually prompts export-focused companies to convert their forex revenues into roubles to meet local liabilities is also supporting the currency. High rouble interest rates are among the factors that could see the currency strengthen to 70-71 against the dollar early next year, said Kirill Sokolov of Sovcombank. But economic growth is seen slowing in 2022 as Russia will have to keep rates high before stubbornly high inflation starts waning, a Reuters poll showed. read more Russian stock indexes were lower. The dollar-denominated RTS index (.IRTS) was down 0.8% at 1,589.0 points. The rouble-based MOEX Russian index (.IMOEX) was 1.1% lower at 3,706.2 points.

مشاركة :