Russian ruble rises on easing geopolitical tensions, tax payments

MOSCOW, Jul 22 (PRIME) -- The Russian ruble has grown 31 kopecks against the U.S. dollar to 34.87 and increased by 56 kopecks against the euro to 47.04 by the middle of the trading session on Tuesday on easing geopolitical risks and thanks to a tax payment period, analysts said.

The market players are not frightened by today’s meeting of E.U. foreign ministers, who can make anti-Russian decisions. Investors hope for the best after U.S. President Barack Obama said late Monday that he stands for a peaceful settlement of the conflict.

“In general, yesterday’s events supported the national currency, however, a most influence comes from the nearing tax payment period and increasing exporters’ activity on the currency market. It will be of no surprise, if they increase demand for the ruble amid the improving news background and worsening conditions of the liquidity market,” Rosbank analyst Yevgeny Koshelev said.

St. Petersburg Bank said in a research note that the market had already priced in the worst possible scenarios and no strong movements should be expected.

But Vladimir Yevstifeyev thinks that pressure from the geopolitical events and international sales of risky were compensated by currency offers from exporters. But ruble it can be weakened next week if the geopolitical situation does not improve, he said.

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