Russian rouble firms towards 62 vs dollar as oil pressure lingers


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

MOSCOW, Dec 9 (Reuters) - The rouble strengthened towards 62 against the dollar on Friday, recouping some of the losses sustained this week with Russian assets under pressure from weaker oil prices and uncertainty over the impact of a new price cap on Russia's main export.

At 0756 GMT, the rouble was up 0.7% against the dollar at 62.31 RUBUTSTN=MCX . It sunk to a near eight-week low of 63.4325 on Wednesday.

The currency had gained 0.4% to trade at 65.92 versus the euro EURRUBTN=MCX and firmed 0.5% against the yuan to 8.95 CNYRUBTOM=MCX .

The central bank's final rate-setting meeting of the year next Friday, at which a rate hold at 7.5% is widely expected, could add volatility to the currency market, said Veles Capital in a note.

Bank of Russia analysts said this week the country's economy and government finances face pressure from the European Union's embargo of Russian oil exports and a $60-a-barrel price cap imposed by the G7, the EU and Australia.

Brent crude oil LCOc1 , a global benchmark for Russia's main export, was up 0.5% at $76.5 a barrel, having slid to its lowest mark this year in the previous session. Oil prices are set to post their biggest weekly drop in months.

In addition to the oil embargo and price ceiling risks, the prospect of another EU sanctions package against Moscow and the second-largest lender VTB VTBR.MM suspending coupon payments on some subordinated bond issues, were weighing on stock markets.

Russian stock indexes were mixed.

The dollar-denominated RTS index .IRTS was up 0.6% to 1,103.7 points. The rouble-based MOEX Russian index .IMOEX was 0.1% lower at 2,183.2 points.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM
Reporting by Alexander Marrow Editing by Raissa Kasolowsky

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.