Rouble slips as falling oil prices outweigh demand for EM currencies

Credit: REUTERS/ILYA NAYMUSHIN

The Russian rouble slipped in early trade on Monday as falling oil prices outweighed a pick up in demand for emerging market currencies.

By 0735 GMT, the rouble had fallen 0.2% against the dollar to 75.92 RUBUTSTN=MCX after a slightly stronger open. The Russian currency had lost 0.1% to trade at 89.81 versus the euro EURRUBTN=MCX.

Oil prices fell on Monday because of the potential resumption of output from Libya. A global increase in coronavirus cases also added to worries about global oil demand, but a tropical storm heading for the Gulf of Mexico limited losses. O/R

Brent crude oil LCOc1, a global benchmark for Russia's main export, was down 1.4% at $42.53 a barrel.

Analysts said they expected the rouble to attempt to firm on Monday as export-focused companies prepared to convert their foreign currency to pay local taxes, which is expected to peak later this week.

Alexei Antonov, an analyst at Alor brokerage, said the rouble would attempt to strengthen on Monday but would remain above 75 against the dollar.

Russian stock indexes were trading lower.

The dollar-denominated RTS index .IRTS was down 1.3% to 1,212.7 points. The rouble-based MOEX Russian index .IMOEX was 1% lower at 2,922.5 points.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

(Reporting by Gabrielle Tétrault-Farber; Editing by Kirsten Donovan)

((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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