🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Rouble weakens to 63 vs dollar as rate decision edges closer

Published 12/12/2022, 13:04
Updated 12/12/2022, 13:06
© Reuters. FILE PHOTO: A picture illustration shows rolled Russian rouble banknotes on a table in Warsaw, Poland, January 22, 2016. REUTERS/Kacper Pempel//File Photo
USD/RUB
-

By Alexander Marrow

MOSCOW (Reuters) - The Russian rouble weakened on Monday, sliding to 63 against the dollar, as global inflation pressure and recession concerns limited appetite for risk, with investors looking ahead to the Bank of Russia's rate-setting meeting on Friday.

Markets also are awaiting a flurry of other interest rate decisions this week, including from the U.S. Federal Reserve and the European Central Bank.

By 1246 GMT, the rouble was 0.9% weaker against the dollar at 62.99, earlier crossing the 63 threshold, and had lost 1.7% to trade at 66.65 versus the euro, clipping its weakest point since late May.

It had lost 0.4% against the yuan to 9.01.

"In the coming days, the rouble will start to receive support from the tax period, but towards the end of the year, demand for FX could grow as a result of investors hedging their rouble positions and building up FX reserves," Alor Broker said in a note.

Sber CIB Investment Research said it expected exporters to provide support later in the session, allowing the rouble to gain a foothold near 62.2 to the greenback.

The rouble has showed a largely muted reaction to oil price swings in the last week. Volatility has been high as a price cap on Russian oil kicked in.

Brent crude oil, a global benchmark for Russia's main export, was down 0.7% at $75.6 a barrel, pushing Russian stock indexes lower.

"Even the new round of sanctions against Russia, which may be adopted today at the EU Council meeting, most likely will not disturb the stability of the Russian market in general, though there could be some reaction in selected stocks," said BCS World of Investments.

The dollar-denominated RTS index was down 1.3% to 1,084.5 points. The rouble-based MOEX Russian index was 0.4% lower at 2,168.7 points.

© Reuters. FILE PHOTO: A picture illustration shows rolled Russian rouble banknotes on a table in Warsaw, Poland, January 22, 2016. REUTERS/Kacper Pempel//File Photo

For Russian equities guide see

For Russian treasury bonds see

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.