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Rouble falls as investors focus on Fed meeting

Credit: REUTERS/MAXIM SHEMETOV

The Russian rouble slipped against the U.S. dollar on Tuesday, tracking other emergency market currencies as investors turned their attention to a U.S. Federal Reserve meeting where it is expected to reinforce its dovish stance.

MOSCOW, July 28 (Reuters) - The Russian rouble slipped against the U.S. dollar on Tuesday, tracking other emergency market currencies as investors turned their attention to a U.S. Federal Reserve meeting where it is expected to reinforce its dovish stance.

At 0740 GMT, the rouble was 0.5% weaker against the dollar at 71.94 RUBUTSTN=MCX and had lost 0.2% to trade at 84.27 versus the euro EURRUBTN=MCX.

The Federal Reserve meets on Tuesday and Wednesday. It could confirm hints about the benefits of an average inflation target, which would allow rates to stay lower for longer.

The rouble was also dragged down by oil prices, which fell on Tuesday as an increasing number of coronavirus cases dampened the outlook for fuel demand and offset investors' optimism about efforts to stimulate the recovery of the U.S. economy.

Brent crude oil LCOc1, a global benchmark for Russia's main export, was down 0.3% at $43.55 a barrel by 0736 GMT.

Later on Tuesday the rouble will be losing the boost it had received from Russia's month-end tax period, which usually prompts export-focused companies to convert their foreign currency to meet local duties.

Russian stock indexes were mixed.

The dollar-denominated RTS index .IRTS was nearly flat at 1,266.5 points. The rouble-based MOEX Russian index .IMOEX was trading 0.3% higher at 2,893.6 points.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

(Reporting by Gabrielle Tétrault-Farber; Editing by Ed Osmond)

((Gabrielle.Tetrault-Farber@thomsonreuters.com;))

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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