Tuesday, 24 March 2015 16:16
MOSCOW: Russia’s rouble opened broadly weaker on Tuesday after firming on Monday to its highest level against the dollar this year, with a decline in oil prices weighing on the Russian currency.
At 0730 GMT, the rouble was around 0.1 percent lower against the dollar at 58.83. It was trading around 0.1 percent down at 64.34 versus the euro.
Oil, Russia’s chief export, dropped to $ 55.50 per barrel of Brent on Tuesday after activity in China’s factory sector fell to an 11-month low and as Saudi Arabia said its production was close to an all-time high.
Analysts, however, believe the rouble may firm again after hitting $ 58.74 on Monday, its strongest this year, with support coming from the broadly weaker dollar.
The dollar remains under pressure after the U.S. Federal Reserve last week declined to forecast the possible timing of interest rate increases.
“We do not rule out that this week the rouble/dollar pair will test the 55 (roubles per dollar) mark,” Andrei Dirgin, head analyst at Alfa-Forex, wrote in a note.
Russian share were also down, with the rouble-traded MICEX index trading 0.4 percent lower at 1,596 points and the dollar-based RTS losing 0.6 percent to 854 points.
Copyright Reuters, 2015
