MOSCOW: The Russian rouble weakened in volatile trade on Monday, shrugging off higher oil prices and month-end taxes that normally support the Russian currency.
The theme of sanctions and a stand-off between Russia and the West remained in the spotlight following the latest round of US penalties against Moscow that battered Russian markets earlier this month.
At 0741 GMT, the rouble was 0.7 percent weaker against the dollar at 61.84, heading towards its weakest levels since 2016 of 65.06 it hit on April 11 after the US sanctions.
Versus the euro, the rouble was 0.6 percent weaker at 75.95, hovering at a distance from levels around 70-71 seen before the sanctions that targeted several Russian companies and businessmen believed to have ties with President Vladimir Putin. .
If not for the sanctions and geopolitical tensions, the rouble would have been on track to benefit from month-end tax payments that usually prompt export-focused companies to convert their dollar revenues to meet local liabilities.
VTB Capital analysts said in a note “higher hard currency selling from export, which, if combined with a lower dollar/rouble international bid, might give room for some appreciation in the rouble, especially against EM peers” later this week.
Oil prices also played on the upside for the Russian market. Brent crude oil, a global benchmark for Russia’s main export, traded at $73.8 per barrel, near its highest level since late 2014 of $74.75 it touched last week.
Russian stock indexes were mixed.
The dollar-denominated RTS index was down 0.4 percent at 1,141.1 points, while the rouble-based MOEX Russian index was up 0.3 percent higher at 2,238.1 points.
Source: Brecorder
