| 23 July 2024, Tuesday |

Russian ruble steadies as oil prices hit over three-month high

The Russian ruble stabilized as it approached three government bond auctions, benefiting from oil prices reaching a 3-1/2-month high. However, its potential for significant growth was hindered by ongoing geopolitical risks.
At 0722 GMT, the ruble was unchanged against the dollar at 92.32 and had lost 0.2 percent to trade at 101.38 versus the euro. It was steady against the yuan to 12.84.

Brent crude oil, a global benchmark for Russia’s main export, was up 0.7 percent at $85.50 a barrel, earlier hitting its strongest since April 17.
A high-rise building in Moscow’s business district that houses three Russian government ministries was struck by a drone for the second time in three days on Tuesday, in what Russia called an attempted Ukrainian “terrorist attack.”

Economic sanctions have been the biggest headache for Russia’s business elite since the start of the war in Ukraine, but the two drone strikes in Moskva Citi are forcing companies to think about their employees’ safety.

Russian stock indexes were mixed.

The dollar-denominated RTS index was up 0.1 percent to 1,056.5 points. The ruble-based MOEX Russian index, which in the previous session hit its strongest mark since before Russia’s February 2022 invasion of Ukraine, was steady at 3,093.6 points.

The MOEX is abnormally high, said Sinara Investment Bank in a note. The index still remains well below the record highs above 4,000 points hit in late 2021, stung by geopolitics.

“Retail investors’ euphoria may continue today both on the back of dividend reinvestment and the weakening ruble, however long-term growth perspectives are in doubt due to growing risks,” Sinara said.

Russia’s finance ministry will hold three OFZ treasury bond auctions on Wednesday.

  • alarabiya