MOSCOW: The rouble traded flat on Monday as investors anticipated the central bank would later in the day keep its key interest rate on hold but take the heat out of money market rates.
Shares fell as uncertainty about how the US budget standoff will pan out kept a lid on risk appetite.
Analysts expect the central bank to keep the one-week auction repo rate, presently 5.5 percent, on hold at Monday's policy meeting in a bid to bring inflation down.
The central bank is to publish a statement following the monetary policy meeting at around 0930 GMT.
The rouble edged down 0.1 percent against the dollar to 32.26 and was little changed versus the euro at 43.75, leaving it flat at 37.43 against the dollar-euro basket.
"The rouble has been trading in a range versus the dollar, as well as versus the basket...., Let's see what the central bank decides," said Igor Akinshin, a trader at Alfa Bank. He also cited investor nerves linked to the fiscal stalemate in Washington.
Russia's central bank will also offer on Monday up to 500 billion roubles in an auction of three-month funds secured by non-market assets and guarantees.
A successful auction would help ease rouble liquidity ahead of Russia's monthly tax payment period, which starts this week, fuelling a further decline of the 3-month Mosprime rate , an interbank money market rate that is currently at 6.77 percent, VTB Capital analysts said.
Russian shares edged down. At 0722 GMT the rouble-denominated MICEX was down 0.7 percent at 1503 points. The dollar-denominated RTS was down 0.6 percent at 1468 points.
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