MOSCOW: The Russian rouble fell on Monday, weighed down growing expectations the central bank may soon cut interest rates on signs that the economic growth is slipping.
Russia's economy grew by a lower-than-expected 1 percent in the first quarter of 2013 and a cut in the GDP forecast for the full year is likely, Economy Minister Andrei Belousov said on Sunday.
At 0805 GMT, the rouble was down 0.2 on the day at 31.58 against the dollar after losing 1.5 percent over the previous week. The rouble lost 0.1 percent at 41.04 versus the euro.
The rouble was 0.1 percent weaker at 35.84 against the dollar-euro basket, trading near September lows and above the 35.65 floor where the central bank steps in to intervene to support the currency. The bank sold $68 billion on Thursday, according to the latest available data.
"There are two-way flows, no specific demand for dollars today. It seems we got stuck at 31.50-31.70 level for some time," said Mikhail Paley, a dealer at VTB Capital, adding that investors took a breather following the sell-off last week after the dollar dropped to a two-week low against the euro.
Prices of oil, Russia's chief export - fell to eight-month lows last week and were slightly up to $104.6 per barrel on Monday. Russia's federal budget deficit of 0.8 percent of GDP envisages average oil price of $97 per barrel of Urals in 2013.
The dollar-denominated RTS index traded 0.8 percent upon the day at 1,422.5 points, near its lowest levels since late November. The rouble-traded MICEX was down 0.6 percent at 1,425.8 points.
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