MOSCOW Reuters - The Russian rouble was stabilised on Monday, supported by a favourable month-end tax period and the possibility of upcoming dividend payments, which pushed stocks higher as investors looked ahead to Friday's central bank rate decision.
The rouble was unchanged against the dollar at 61.29 at the time of 0806 GMT. It had gained 0.1% to trade at 60.17 versus the euro and lost 0.5% against the yuan to 8.35.
The rouble is buttressed by a month-end tax period that usually sees export-focused firms convert foreign exchange revenues into roubles to pay domestic tax liabilities.
The role of the tax payments and dividends of Russian companies payable in November should help the rouble to continue its general strengthening trend towards 60 against the dollar, said Dmitry Polevoy, head of investment at Locko Invest.
The Bank of Russia has reduced its key rate six times this year after an emergency hike to 20% in February as Russia sent tens of thousands of troops into Ukraine, causing inflation to spike.
The bank cut rates to 7.5% last month, but omitted guidance about future reductions.
Brent crude oil, a global benchmark for Russia's main exports, was down 1.3% at $92.3 a barrel.
The market will be supported by expectations of the start of dividends from Gazprom and Tatneft, which should provide fuel for the growth of the index, said Promsvyazbank in a note.
The dollar-denominated RTS index was up 1.4% at 1,064. It's strongest since October 6. It's 7 points. The Russian MOEX index was higher by 1.3% at 2,070, according to the rouble-based MOEX. 3 points.