Russian rouble firms as government proposes capital controls extension

MOSCOW: The rouble hit a one-week high against the dollar on Tuesday as the Russian government proposed extending capital controls that have buoyed the currency in recent months until the end of the year. At 0723 GMT, the rouble was 0.2% stronger against the dollar at 87.65, earlier hitting its strongest point since Jan. 16.

It had gained 0.1% to trade at 95.72 versus the euro and was unchanged against the yuan at 12.19 . The capital controls, ordered by President Vladimir Putin in an October decree, require exporters to convert foreign currency revenues into roubles. The rouble had traded past 100 to the dollar shortly before the decree was announced.

The government proposed extending the controls until the end of the year from their current expiration in April. The rouble is also being buttressed by state foreign currency sales and the prospect of month-end tax payments.

State FX sales, carried out by the central bank, are set to amount to the equivalent of 16.7 billion roubles ($190.5 million) of foreign currency a day until the end of January. The finance ministry switched to making sales from purchases after December oil-and-gas revenue was lower than expected. Brent crude oil, a global benchmark for Russia's main export, was up 0.1% at $80.16 a barrel.

Russian stock indexes were higher. The dollar-denominated RTS index was up 0.4% to 1,141.4 points. The rouble-based MOEX Russian index was 0.1% higher at 3,175.8 points.