Looks like Russian CB intervention although I can't quite figure out this article
Rouble Trades at New Central Bank Dollar Support Level
By Reuters
Tuesday, October 12, 2004
reuters.com
duid=mtfh31397_2004-10-12_08-01-08_l12643544_newsml
MOSCOW -- Russia's central bank intervened on the
rouble market with a lower dollar bid on Tuesday after
retreating in the previous session under appreciation
pressure stemming from record oil export earnings,
dealers said.
The central bank, which runs a heavily-managed "dirty"
float of the rouble, was sighted with a dollar bid at
29.1150 roubles after on Monday withdrawing an earlier
support level of 29.2150 it had held since August.
At the 0730 GMT daily fixing, set at a joint trading
session of eight exchanges across the country, the
rouble for "tomorrow" delivery was pegged at 29.1152
to the dollar from 29.1272 the previous session.
"The central bank appears to be buying at 29.1150,"
said Sergei Kornev, a dealer at International Moscow
Bank. "Banks will periodically test the central bank's
grip on this level."
"We now see there is active support at the 29.1150
level," said a dealer with a Western bank.
The dealer forecast market players may sell up to a
billion dollars to the central bank in this session,
betting that the rouble will resume its advance after
setting a 3-month high on Monday.
The central bank was not immediately available to
comment. It typically declines to comment on its
intervention operations.
Analysts say Russia's bulging trade surplus is testing
the central bank's resolve to cap the rouble and
maintain economic competitiveness, as its intervention
is fuelling potentially inflationary growth in the money
supply.
That, say economists, will make it hard for the central
bank to meet its twin targets of limiting inflation to 10
percent this year and real effective rouble appreciation
at 7 percent.
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