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Wednesday, January 16, 2019

Ruble band moved higher by Bank of Russia for second time in one week

For the second time in a week, the Bank of Russia has moved the ruble's trading band higher, according to the central bank.

The band was moved five kopecks, taking it to RUB32.95-RUB39.95 against the euro dollar basket, the Wall Street Journal reports.

The currency is kept within a floating corridor against the basket by the central bank, which moves the band five kopecks either way if its accumulated purchases or selling of foreign currencies exceeds $350 million.

The bank sells dollars and euros to ease downside pressure on the upper end, which is what it has done in the past few months. It buys foreign currencies when the ruble strengthens toward the lower boundary of the band and when it is in the middle it does nothing, according to Wall Street Journal.

The band was moved higher five times this month.