MOSCOW: The Russian rouble fell sharply on Monday morning, following down crude prices which have slid in recent days as prospects dimmed that a planned production freeze by major oil producers will go ahead.
At 0755 GMT, the rouble was 1.8 percent weaker against the dollar at 68.79 and had lost 1.7 percent to 78.23 versus the euro.
Brent crude oil, a global benchmark for Russia's main export, was down 0.9 percent at $38.9 a barrel, following a nearly 4 percent slide on Friday, as chances of Middle East producers agreeing to curb overproduction appeared to fade.
"The key driver of the retreat in the rouble is the appreciable fall in the Brent oil price," Instaforex analyst Igor Kovalev said in a note.
He said hopes of a production freeze to be discussed in the Qatari capital Doha later this month are gradually fading, after Saudi Arabia said it would take part only if Iran did, while Iran continued to rule out participation.
"Regarding the immediate prospects for Brent and the rouble, after such sad news both assets will probably remain under pressure today."
Russian share indexes were mixed, reflecting the weaker rouble which weighs on share prices in dollar terms.
The dollar-denominated RTS index was down 1.3 percent to 851 points, while the rouble-based MICEX was flat at 1,857 points.
Comments
Comments are closed for this article.