MOSCOW: The Russian rouble weakened on Tuesday, tracking a fall in the oil price and losing support from exporters who have finished paying their monthly taxes.
At 0745 GMT, the rouble was 0.3 percent weaker against the dollar at 65.93. The rouble lost 0.1 percent from Monday's close to trade at 73.40 versus the euro.
Brent crude oil, a global benchmark for Russia's main export, was down 0.4 percent at $49.58 a barrel. All monthly taxes by Russian exporters have already been paid, easing demand for the rouble.
Analysts at Rossiysky Capital expect the rouble to trade between 65.50-66.50 roubles per dollar during the session.
May has been marked by relatively small trading deviations from the current levels. But many analysts expect June to be tougher for the Russian currency.
Analysts at TeleTrade expect that risks for the rouble will come from a downward correction in crude prices following the meeting of the Organization of the Petroleum Exporting Countries (OPEC) this week.
Pressure will also come from the probability of the U.S. Federal Reserve raising its interest rate, as well as foreign debt repayments by Russian companies of about $10 billion, which is more than in any month so far this year.
"The combination of these factors may put pressure on the rouble," Mikhail Poddubsky, an analyst at TeleTrade, wrote in a note.
Alexander Grichenkov, an analyst at MFX Broker in Moscow, wrote in a note that it is probable the rouble will weaken to 68 roubles per dollar and 75 roubles per euro this week.
Russian share indexes were down. The dollar-denominated RTS index was down 0.3 percent to 923 points, while the rouble-based MICEX was 0.2 percent lower at 1,932 points.
Comments
Comments are closed for this article.