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Russian rouble strengthens vs United States dollar on liquidity deficit

The Russian rouble strengthened against the U.S. dollar and euro on Tuesday on shortterm liquidity deficit in spite of cheaper oil and lack of active sales of foreign currency by exporting companies

At 0815 GMT, the rouble was up 1.0% at 89.10 to the dollar, LSEG data revealed. Traders said the fortifying could be an outcome of a short-term rouble liquidity deficit in the market after exporting companies paid their taxes at the and of the month.

Trading in significant currencies in Russia shifted to the over the counter (OTC) market, obscuring rate data, after Western sanctions on the Moscow Exchange and its cleaning representative, the National Cleaning Centre, were presented on June 12.

The rouble was 0.4% lower at 12.09 versus the Chinese yuan, which has ended up being the most-traded foreign currency in Moscow's. stock market trade, however strengthened by 0.7% against the yuan. in the OTC market, according to LSEG data.

The spreads in between yuan rates in the OTC market and the. stock exchange have actually been unstable in current weeks, showing. ongoing issues in worldwide transactions with the Chinese. currency that have actually hampered trade in between the two countries.

One-day rouble-dollar futures, which trade on the Moscow. Exchange and are a guide for OTC market rates, were up 0.4% at. 88.94. The reserve bank's main exchange rate, which it. calculates utilizing OTC data, was set at 90.00 to the dollar.

The rouble was 1.1% more powerful 98.29 against the euro. , LSEG information showed.

Brent crude oil, a worldwide benchmark for Russia's. main export, was down 0.4% at $76.96 on sluggish economic growth. in China, the world's most significant crude importer.

(source: Reuters)