Russian rouble strengthens after central bank plays down inflationary risk

MOSCOW, Nov 7 (Reuters) - The Russian rouble strengthened against the U.S. dollar on Friday after the central bank said that exchange rate dynamics carry no inflationary risks and the rouble's rally this year has already been reflected in prices.

By 1215 GMT the rouble RUB= was up 0.36% at 80.95 against the dollar in over-the-counter trade and was down 0.1% at 11.35 against the yuan on the Moscow Stock Exchange.

The central bank said the rouble's rally in 2025 was a result of its tight monetary policy, minutes of its October 24 meeting showed on Thursday.

The strengthening of the rouble since the beginning of the year has mostly been reflected in prices, the bank said.

"Therefore, in the absence of significant external shocks, the exchange rate dynamics should not pose substantial inflation risks in the coming months," it added.

The central bank, which traders say accounts for about 10% of the currency market's daily forex operations, said the rouble has been supported by restrictions on imports, lower domestic demand for foreign currency owing to Western sanctions and the finance ministry's forex sales from the budget reserve fund to finance the budget deficit.

The state's overall daily net forex sales, which combine forex operations by the ministry and the central bank, have been reduced by 5% to 9.04 billion roubles ($111.19 million) per day from today.

($1 = 81.3000 roubles)