Rouble eases amid pandemic uncertainty, helped by recovering oil prices

Credit: REUTERS/MAXIM SHEMETOV

The Russian rouble weakened slightly on Tuesday amid global uncertainty surrounding the resurgence of the COVID-19 pandemic and ahead of the Nov. 3 U.S. presidential election.

MOSCOW, Oct 27 (Reuters) - The Russian rouble weakened slightly on Tuesday amid global uncertainty surrounding the resurgence of the COVID-19 pandemic and ahead of the Nov. 3 U.S. presidential election.

At 0728 GMT, the rouble was 0.2% weaker against the dollar at 76.54 RUBUTSTN=MCX and had lost 0.2% to trade at 90.45 versus the euro EURRUBTN=MCX.

"Fluctuations remain moderate by current standards," said Dmitry Polevoy, head of investment at Locko Invest, adding the rouble would likely stay in a 76.00-76.60 range against the dollar on Tuesday.

Rising numbers of coronavirus infections around the world remain in focus as they are leading to increased restrictions, potentially derailing a global economic recovery.

Russia has said it will not impose strict lockdowns despite a record high daily increase in the number of coronavirus cases. From Tuesday, it ordered bars and restaurants to close overnight to try to contain the spread.

Brent crude oil LCOc1, a global benchmark for Russia's main export, was up 0.5% at $40.67 a barrel, recovering ground after a sharp drop in the previous trading session.

The rouble weathered that storm well thanks to two domestic factors - foreign currency sales by the central bank and a monthly tax-payments period that boosts demand for roubles - said Andrei Kochetkov, an Otkritie Brokerage analyst.

Russia's central bank promised to increase its daily selling of foreign currency to the equivalent of 9.8 billion roubles ($128.5 million) from Monday, according to Reuters calculations.

The bank, which reports its foreign currency sales with a two-day lag, said it had sold 8.6 billion roubles worth of forex last Friday.

Russian stock indexes were mixed.

The dollar-denominated RTS index .IRTS was down 0.4% to 1,147.5 points. The rouble-based MOEX Russian index .IMOEX was flat at 2,786.0 points.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

($1 = 76.2604 roubles)

(Reporting by Alexander Marrow; Editing by Andrey Ostroukh and Mark Potter)

((alexander.marrow@thomsonreuters.com; +7 495 775 1242;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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