Russian rouble slips ahead of govt bond auctions
Updates with further losses
MOSCOW, May 29 (Reuters) - Russia's rouble fell to a two-week low on Wednesday on emerging market jitters linked to the U.S.-China trade war, as the finance ministry prepared to hold its weekly treasury bond auction that could buttress the currency.
At 0956 GMT, the rouble was 0.6% weaker against the dollar at 65.11 RUBUTSTN=MCX, its lowest since 65.16 on May 14. The Russian currency had lost 0.5% to trade at 72.61 versus the euro EURRUBTN=MCX.
The rouble and other emerging market currencies slid on Tuesday after U.S. President Donald Trump said Washington was not yet ready to cut a deal with China that could bring an end to a drawn-out trade dispute.
Chinese newspapers warned on Wednesday that Beijing could use rare earths to strike back at the United States.
"Russian stock indexes and the rouble are under external pressure this morning from the adverse external background and risk avoidance by global investors," said Elena Kozhukhova, an analyst at Veles Capital.
"This means it could continue the downward movement that was seen on Tuesday."
The rouble could receive support when the finance ministry holds its weekly auction of OFZ treasury bonds later on Wednesday.
Rouble-denominated OFZ bonds, which serve as a gauge for global market sentiment, have drawn significant foreign demand in recent months.
Brent crude oil LCOc1, a global benchmark for Russia's main export, was down 1.4% at $68.71 a barrel.
Russian stock indexes were mixed.
The dollar-denominated RTS index .IRTS was down 0.45% to 1,265.3 points. The rouble-based MOEX Russian index .IMOEX was 0.18% higher at 2,614.6 points.
For Russian equities guide see RU/EQUITY
For Russian treasury bonds see 0#RUTSY=MM
(Reporting by Tom Balmforth, Vladimir Abramov, Gabrielle Tétrault-Farber; Editing by Angus MacSwan and Jan Harvey)