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Russian rouble enhances on hopes of easing of tensions with West

The Russian rouble strengthened against the U.S. dollar and the euro on Wednesday, with experts stating the volatile and opaque sell the currency was cautiously responding to hopes of an easing of tensions with the West after the election of Donald Trump.

By 0800 GMT, the rouble was 0.3% more powerful versus the dollar at 98.10 and 0.3% more powerful against the euro at 104.17, according to LSEG information.

Worldwide, the U.S. dollar held just listed below a 6-1/2- month peak versus major peers, following Trump's triumph in the U.S. presidential election. Trump said during campaigning that he could bring peace in Ukraine within 24 hours if chosen.

Against China's yuan the rouble deteriorated by 0.6% to 13.57 in trade on the Moscow stock exchange after strengthening in three consecutive sessions.

Basically, the rouble is influenced by careful expectations of geopolitical relieving and stabilisation in the money market as yuan liquidity rates are typical, BCS brokerage analysts said.

The rouble has actually lost about 13% versus the dollar considering that early September and quickly hit the 100 mark last week. BCS experts said that they see a minimum of a 2% capacity for even more strengthening of the rouble in the coming days.

Western sanctions imposed on the Moscow Exchange (MOEX) and its cleaning representative, the National Clearing Centre, on June 12 stopped all sell dollars and euros at MOEX, making the yuan the most-traded foreign currency in Russia.

Trade in dollars and euros has actually moved to the over the counter (OTC) market, obscuring rate data and making the rouble's currency exchange rate more unstable.

One-day rouble-dollar futures, which trade on the Moscow exchange and are a guide for OTC market rates, were up 0.3% at 98.47. The reserve bank's main exchange rate, which it calculates using OTC information, was last set at 97.86 to the dollar.

Brent petroleum, a worldwide benchmark for Russia's. main export, was up 0.4% at $72.14 a barrel on signs of. near-term supply tightness.

(source: Reuters)