Yahoo Finance UPDATE 1-Rouble weakens vs dollar, Russian stocks hit pre-invasion high
(Updates at 1311 GMT, adds Sinara comments in paragraph 12)
By Alexander Marrow
July 27 (Reuters) - The Russian rouble edged lower on Thursday, trading in a narrow band near 90 against the U.S. dollar, proving unable to latch on to higher oil prices and exporters' preparations for month-end tax payments to record any significant gain.
By 1311 GMT, the rouble was 0.4% weaker against the dollar at 90.50 and was unchanged at 99.92 versus the euro. It had shed 0.3% against the yuan to 12.62 .
The rouble is trying to move past 90 against the dollar, said Alor Broker's Alexei Antonov, and if it breaks through, strengthening may accelerate.
The rouble has been weakening this year as exports fall and imports recover, but it hit a more than 15-month low in early July as pressure increased sharply following an abortive armed mutiny by the Wagner mercenary group in late June.
Last week's larger-than-expected, 100-basis-point interest rate hike by the Bank of Russia to 8.5% had limited immediate impact on the currency, but higher rates should lend the rouble support as they make investment in Russian assets more attractive.
Taxes due on July 28, where exporters usually convert foreign currency revenue to meet local liabilities, could buttress the rouble.
Brent crude oil, a global benchmark for Russia's main export, was up 1% at $83.72 a barrel, nearing a more than three-month high and supporting Russian stock indexes.
The rouble-based MOEX Russian index was 0.7% higher at 2,991.0 points, its strongest mark since before Russia invaded Ukraine in February 2022.
Some large companies announcing the resumption of dividend payments in June and July has supported the index, but it remains well below the record highs above 4,000 points hit in late 2021, stung by geopolitics.
The index has not quite "mustered up the courage" to break past the 3,000-point mark, said Sinara Investment Bank, but powerful drivers, including companies reporting first-half earnings, are starting to influence trading.
VTB shares were 5.4% higher after the bank raised lending forecasts and said it was on track for record profit this year. Tech giant Yandex's Moscow shares were steady after the company reported a profit slip.
"Taking the 'heights of 3,000' may mark a big breakthrough, but the market needs to be clearly determined because if it stumbles again at the resistance level, it may seriously pull back at the end of the week," Sinara said.
The dollar-denominated RTS index was up 0.2% at 1,041.1 points, earlier hitting its highest in over a month. (Reporting by Alexander Marrow; Editing by Christopher Cushing and Jonathan Oatis)
