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Thursday, August 22, 2019

Ruble band moved higher by Bank of Russia

For the seventh time this month, the Bank of Russia has moved the ruble's trading band higher.

The band was moved five kopecks to RUB33.05-RUB40.05 against the euro-dollar basket, Nasdaq reports.

The euro-dollar basket is used as the central bank's main gauge of the currency market.

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

The bank also sells dollars and euros to ease downside pressure, which it has done over the course of the last few months.

When the ruble strengthens toward the lower boundary of the band, the bank buys foreign currencies, Nasdaq reports.