Russian rouble weakens, stocks hit five-month high before retreating

Credit: REUTERS/MAXIM SHEMETOV

The Russian rouble weakened on Thursday as oil prices fell, while stocks jumped to a more than five-month high before losing ground.

MOSCOW, Aug 6 (Reuters) - The Russian rouble weakened on Thursday as oil prices fell, while stocks jumped to a more than five-month high before losing ground.

At 0810 GMT, the rouble was 0.5% weaker against the dollar at 73.27 RUBUTSTN=MCX and had lost 0.4% to trade at 86.80 versus the euro EURRUBTN=MCX.

The weakening U.S. dollar normally plays in the rouble's favour, said Elena Kozhukhova, analyst at Veles Capital, but the Russian currency has ignored this in recent weeks. A recovery in imports and caution in August due to a history of adverse events have weighed on the rouble.

Brent crude oil LCOc1, a global benchmark for Russia's main export, was down 0.5% at $44.96 a barrel, moving away from its strongest level since March 6, hit on Wednesday.

The external background ahead of trading was neutral, said Andrei Kochetkov, an analyst at Otkritie Brokerage, with oil prices initially strengthening and the improving performance of commodity currencies versus the greenback playing against negative dynamics in Asian stock markets.

Market players were focused on U.S. jobless data, expected at 1230 GMT.

Russian stock indexes dipped.

The dollar-denominated RTS index .IRTS was down 0.8% at 1,285.7 points. The rouble-based MOEX Russian index .IMOEX was 0.1% lower at 2,990.0 points, having earlier broken above the psychological 3,000 point barrier for the first time since Feb. 27.

Shares in TCS Group TCSq.L were up 2.7% in London after the group reported a 25% rise in its second-quarter net profit.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

(Reporting by Alexander Marrow; editing by Emelia Sithole-Matarise)

((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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