The Russian ruble extends its recovery from a near 10-month low against the dollar

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This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, Feb 20 (Reuters) – The Russian ruble appreciated on Monday, extending its rebound from a near 10-month low hit late last week as demand for the currency surged ahead of exporters’ tax payments at the end of the month .

As of 0713 GMT, the ruble was 0.6% stronger against the dollar at 73.88, further surpassing the 75.30 level, the weakest since April 25 hit on Friday.

Friday’s session saw the highest USD/RUB trading volume so far this year, data from Refinitiv showed.

The ruble rose 0.4% to 79.01 against the euro and strengthened 0.2% against the yuan to 10.73.

After more than a month of gradual weakening, the ruble should find stronger demand ahead of month-end taxes due in a single payment on February 28, when exporters normally convert their FX earnings.

“Exporters’ preparation for the peak of tax payments will show support for the national currency, ahead of which they will show increased demand for ruble liquidity,” said Bogdan Zvarich, chief analyst at Banki.ru.

After 12 days of continuous decline, the ruble’s technical correction should continue, Alor Broker said in a note, tempering that forecast with a warning that geopolitical risks could trigger a renewed decline at any time.

EU leaders are discussing a new set of sanctions against Russia over its actions in Ukraine, with politicians, military leaders and Russian banks expected to be targeted.

Market participants are also likely to pay close attention to President Vladimir Putin’s annual flagship speech to parliament, scheduled for February 21.

The Russian market will be closed on Thursday when Russia celebrates Defender of the Fatherland Day and open for limited trading on Friday.

Brent crude, a global benchmark for Russia’s main export, rose 0.8% to $83.7 a barrel.

Russian stock indices were lower.

The dollar-denominated RTS index was unchanged at 920.0 points. Russia’s ruble-based MOEX index was down 0.5% at 2,157.5.

For the Russian stock guide, see

For Russian government bonds, see (reporting by Alexander Marrow; editing by Kirsten Donovan)

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