MOSCOW: The Russian rouble eased on Monday, pressed by emerging markets jitters and geopolitical tensions after the killing of the leader of Russian-backed separatists in Ukraine.
At 0804 GMT, the rouble was 0.37 percent weaker against the dollar at 67.80 after hitting 69.01, its weakest since April 2016, last month. The Russian currency had lost 0.47 percent to trade at 78.75 versus the euro.
Trading liquidity is expected to be low on Monday as the United States celebrate Labor Day, analysts at VTB Capital said in a note.
“The Russian market is poised to start the week facing an uphill struggle, as sentiment sours towards emerging markets assets and as trade tensions continue to rumble,” analysts at Alfa bank said.
Analysts at Rosbank also said geopolitical tensions remained in the focus for investors, especially the risks of escalation in Ukraine after the leader of Russian-backed separatists in the Donetsk region was killed on Friday.
Russian Foreign Minister Sergey Lavrov has already said talks on Ukraine with leaders from Russia, Ukraine, France and Germany, known as the ‘Normandy format’, were impossible now.
Also in autumn the market waits any decisions from the U.S. Congress about a draft bill that includes restrictions on investment in new Russian sovereign debt and bans several state-run Russian banks from operating in the United States.
However, the rouble is supported by the central bank decision to halt buying of foreign currency for state reserves until the end of September and by higher oil prices.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.39 percent at $77.94 a barrel.
Russian stock indexes were up.
The dollar-denominated RTS index was up 0.01 percent to 1,092.35 points. The rouble-based MOEX Russian index was 0.2 percent higher at 2,350.88 points.
Source: Brecorder
