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Markets

Russian rouble falls as Brexit fears weigh on oil

Published Updated

imageMOSCOW: The Russian rouble fell on Thursday morning, tracking the price of oil which is slipping lower on fears Britain might leave the European Union.

At 0740 GMT, the rouble was 0.6 percent weaker against the dollar at 65.92 and had lost 0.5 percent to 74.27 versus the euro.

Brent crude oil, a global benchmark for Russia's main export, was down 1.6 percent at $48.2 a barrel, which traders said reflected concerns a vote for Brexit would have negative consequences for the global economy.

Analysts said those concerns were outweighing the potential boost to the rouble from the U.S. Federal Reserve's decision to leave interest rates on hold.

"On the one hand the weakening of the dollar and of risks of higher Fed rates is a clear positive for the rouble. But the lowering of oil prices is putting pressure on it in the other direction," Teletrade analyst Mark Goykhman said in a note.

Russian share indexes were also lower, weighed down by oil and a negative mood on global markets after the Fed highlighted the risks from a potential Brexit.

The dollar-denominated RTS index was down 1.5 percent to 896 points, while the rouble-based MICEX was 0.9 percent lower at 1,873 points.

Copyright Reuters, 2016

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