The rouble stabilized on Monday as Russia’s main stock index soared to a near seven-month high after OPEC+ oil producers agreed to additional oil output goal cuts of around 1.16 million barrels per day (bpd), which caused oil prices to rise.
Around 08:04 GMT, the rouble-based MOEX Russian index was 0.9% higher at 2,472.4 points, with early trading reaching 2,481.59 points, its highest level since September 6, 2022.
The RTS index denominated in dollars increased 0.6% to 1,002.6 points.
The United States deemed it unwise for OPEC+, which consists of the Organization of the Petroleum Exporting Countries, Russia, and other allies, to reduce its output target on Sunday.
Brent crude oil, the worldwide benchmark for Russia’s primary export, rose 5.8% to $84.6 a barrel, a four-week high.
In a concerted move, Russia said that it will prolong a voluntary production reduction of 500,000 bpd through the end of 2023. Russia unilaterally announced these reductions in February, after the imposition of price ceilings in the West.
The rouble fell 0.1% against the dollar to 77.68 and was flat against the euro at 84.24. It strengthened 0.2% versus the yuan, reaching 11.26.
“Rising oil prices could bolster the rouble, which has been relatively weak in recent weeks and is indicating a willingness to go closer to the 80 level,” said Alexei Antonov of Alor Broker. “The rouble has not yet responded to the oil price increase.”
Moscow Exchange, Russia’s main exchange, announced on Monday that it will begin futures trading in Indian rupees and Emirati dirhams on April 4, as part of a broader move in finance and commerce by Moscow towards nations that have not imposed sanctions against Russia for its activities in Ukraine.
Maria Patrikeyeva, head of the exchange’s futures market, said in a statement, “Due to the quickly changing conditions on global markets, clients are requesting a quick reaction from infrastructure.”