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MOSCOW, Nov 1 (Reuters) – The ruble reversed early losses to strengthen against the dollar on Tuesday as higher oil prices helped the Russian currency rally at the end of a favorable fiscal period at the end of months, and investors were waiting for the policy of the US Federal Reserve. Meet.

The Fed is almost certain to raise interest rates by 75 basis points on Wednesday, but investors will be on the lookout for any signals that the pace of interest rate increases may slow going forward.

By 12:25 GMT, the ruble was up 0.2% against the dollar at 61.38 and was down 0.1% to trade at 60.96 against the euro. It was down 0.4% against the yuan at 8.42.

The ruble has now lost support from month-end tax payments, which typically see exporters convert foreign currency earnings to pay local debts.

The ruble could try to weaken beyond 62 against the dollar, said Banki.ru chief analyst Bogdan Zvarich.

“As we trade, we expect the pressure on the domestic currency to remain, which will be eased by lower foreign currency supply from exporters due to past peak tax payments,” he said. added Zvarich.

The ruble is the world’s best-performing currency this year, buoyed by capital controls and a slump in imports following Western sanctions on Russia for its actions in Ukraine, and dozens of foreign companies suspending operations in the country.

But imports have recovered about 90% from their April low, the Institute of International Finance said last week, and are close to levels seen before Russia sent tens of thousands of troops to Ukraine on 24 february.

This resurgence, coupled with rising inflationary risks, will put pressure on the ruble over the medium term, analysts at First Asset Management said.

Brent crude, a global benchmark for Russia’s top export, rose 2.1% to $94.7 a barrel.

Russian stock indices hit their highest in more than a month.

The dollar-denominated RTS Index (.IRTS) rose 0.3% to 1,114.6 points, earlier touching its strongest point since Sept. 30. Russia’s rouble-based MOEX index (.IMOEX) rose 0.2% to 2,171.5 points, earlier hitting its highest mark since Sept. 23.

For the guide to Russian stocks, see

For Russian Treasury bonds, see

Reporting by Alexander Marrow; Editing by Andrew Heavens and Tomasz Janowski

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