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Russian rouble weakens on limited risk appetite, falling oil prices

Credit: REUTERS/MAXIM SHEMETOV

The Russian rouble eased to a one-week low on Friday as investor concerns over China-U.S. relations and rising COVID-19 infections worldwide continued to impede risk appetite.

MOSCOW, July 17 (Reuters) - The Russian rouble eased to a one-week low on Friday as investor concerns over China-U.S. relations and rising COVID-19 infections worldwide continued to impede risk appetite.

At 0752 GMT, the rouble was 0.2% weaker against the dollar at 71.65 RUBUTSTN=MCX, its weakest mark since July 7, and had lost 0.1% to trade at 81.58 versus the euro EURRUBTN=MCX.

Brent crude oil LCOc1, a global benchmark for Russia's main export, was down 0.8% at $43.01 a barrel.

While oil prices were exerting downward pressure on the rouble, it could gain support from other emerging market currencies which were pushing higher, said Bogdan Zvarich, chief analyst at Promsvyazbank.

Fears over the reimposition of lockdown measures following a jump in coronavirus infections in some U.S. states saw the dollar gain from safe-haven inflows.

Meanwhile, President Donald Trump's administration is considering banning travel to the United States by all members of the Chinese Communist Party, according to a person familiar with the matter, in a move that would surely put further strain on relations between Washington and Beijing.

Russian stock indexes were lower.

The dollar-denominated RTS index .IRTS was down 0.7% to 1,211.5 points. The rouble-based MOEX Russian index .IMOEX was 0.1% lower at 2,756.1 points.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

(Reporting by Alexander Marrow Editing by Raissa Kasolowsky)

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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