Tuesday, 14 July 2015 17:07
MOSCOW: The Russian rouble tracked oil prices lower on Tuesday after Iran and six major powers reached a deal over the Islamic republic’s disputed nuclear programme.
Forex sales by exporters checked the rouble’s losses, however, and the central bank said the market had already priced in a deal over Iran.
At 0945 GMT, the rouble was 0.8 percent weaker against the dollar at 56.97 and had lost 1 percent to trade at 62.82 versus the euro.
Brent crude oil was trading 1.8 percent weaker at around $ 56.8 a barrel as the prospect of an easing of sanctions on Iran and gradual increase in its oil exports threatened to add to a global oil surplus which has sent prices sharply lower.
Oil is Russia’s main export and hence a major driver for all Russian assets.
“The rouble has remained surprisingly calm,” said Vladimir Miklashevsky, trading desk strategist at Danske Bank.
“Markets want to see things happening before they react properly as the deal contains lots of conditions.”
The nuclear deal was yet to be formally announced at talks in Vienna, but Iranian and Western diplomatic sources said an agreement had been reached. The Russian Foreign Ministry subsequently published a text of the deal.
A currency dealer at a large Russian bank said around the level of 57 roubles per dollar exporters were offering to sell foreign currency and that this was preventing the rouble from falling further in a thin market.
The Russian currency is expected to receive greater support from exporter forex sales from Wednesday, when the monthly tax period starts. The bulk of the taxes fall due around July 27.
Russian share indexes also fell on Tuesday. The dollar-denominated RTS index was down 1.4 percent to 902 points, while its rouble-based peer MICEX was 0.7 percent lower at 1,632 points.
