Russian rouble strengthens vs US dollar as demand for forex low

MOSCOW, June 10 (Reuters) - The Russian rouble strengthened against the U.S. dollar on Tuesday as the demand for foreign currency in the domestic market remains low, and as prices for oil, Russia's main export, rise.

By 0945 GMT, the rouble RUB= was up 0.5% at 78.60 per U.S. dollar, according to LSEG data based on over-the-counter quotes. The rouble has rallied by around 40% against the dollar so far this year.

The central bank said on June 9 that net foreign exchange sales by Russian exporting companies fell 27% month-on-month to $7.3 billion in May, while demand for foreign currency was at its lowest since June 2024.

"The demand for currency is so low that the rouble is still strengthening, even despite the decline in export revenues," said Vasily Karpunin from Alfa Bank's investment arm.

Most analysts expect the rouble to weaken later in the year if the central bank continues the easing cycle it had embarked on by cutting its key interest rate by one percentage point to 20% last week.

Against the Chinese yuan, the most traded foreign currency in Russia, the rouble strengthened by 0.5% to 10.90 on the Moscow Stock Exchange. The central bank uses yuan for foreign exchange interventions.