Russian rouble falls back towards 75 vs dollar as tax period hits peak

The Russian rouble weakened on Tuesday, giving up some of the sharp gains made in the previous session as exporters converted foreign currency to make tax payments.

At 0728 GMT, the rouble was 0.5% weaker against the dollar at 74.94 and had lost 0.1% to trade at 79.40 versus the euro. It had shed 0.3% against the yuan to 10.74.

Month-end taxes are due on Feb. 28, when exporters typically convert their foreign currency revenue, increasing demand for roubles.

The rouble will try to strengthen during the session, on the back of increased demand for rouble liquidity ahead of tax payments, said Bogdan Zvarich, chief analyst at Banki.ru.

"However, in the second half of the day, support from exporters will start to weaken."

The rouble may also see support from newly sanctioned banks trying to offload foreign currency before they lose access to it.

Russian banks targeted in the latest round of Western sanctions last week have sought to play down the impact, promising speedy solutions to any problems with clients' foreign currency dealings.

Brent crude oil, a global benchmark for Russia's main export, was up 0.5% at $82.8 a barrel.

Russian stock indexes touched two-week highs in early trade.

The dollar-denominated RTS index was unchanged at 945.3 points. The rouble-based MOEX Russian index was 0.4% higher at 2,249.1 points.