MOSCOW: The Russian rouble weakened on Tuesday, giving up earlier gains after Russia and a group of other oil producers failed to agree on an output cut.
At 1115 GMT, the rouble was 0.6 percent weaker against the dollar at 77.41, down from 75.90 per dollar earlier in the day . It was down 0.8 percent against the euro .
Top oil exporters, including Russia and Saudi Arabia, agreed to freeze output at January levels, contingent on other producers joining in.
"A reduction in oil production had been expected, but they did not agree on that so oil reacted negatively and the rouble followed," said Pyotr Neimyshev, a currency dealer at Otkritie bank.
Brent crude oil, a global benchmark for Russia's main export, was at 33.90 a barrel by 1115 GMT, having fallen from an earlier peak of $35.55, the highest price since Feb. 4.
Neimyshev said that without support from Russian exporters who must convert their revenues in the second part of the month to pay taxes, the rouble has no stimulus to grow.
He reckons that if oil remains between $31-$36 per barrel, the rouble will be trading between 75.80-79.50 roubles per dollar.
Russian shares were higher, but the dollar-denominated RTS index traded 0.9 percent higher at 714 points, down from earlier 724 points.
The rouble-based MICEX was up 0.8 percent at 1,752 points, reflecting the rouble's weakening.
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