Rouble edges up on higher oil prices

MOSCOW: The Russian rouble edged higher against a weakened US dollar on Thursday, tracking other emerging market currencies and higher oil prices.

At 0753 GMT, the rouble was 0.1pc stronger against the dollar at 70.98 and was flat against the euro to trade at 82.21.

Oil prices edged higher on Thursday but gains were capped by a surprise build in US crude oil inventories. A surge in new coronavirus cases also dampened a recovery in fuel demand.

Brent crude oil, a global benchmark for Russia's main export, was up 0.4pc at $44.45 a barrel by 0736 GMT.

Analysts had attributed recent gains by the rouble to month-end taxes and dividend payments by Russian companies, which generally prompt recipients to convert the rouble payouts into foreign currency.

But on Thursday Alexei Antonov, head analyst at Alor brokerage, said it was likely that the flow of foreign currency from exporters preparing to pay taxes and dividends had dried up.

He added, however, that he expected the rouble would try to firm in the first half of the day.

The market is eagerly awaiting the central bank's rate-setting meeting on Friday, where it is expected to cut its key interest rate to a record low to mitigate the economic impact of the coronavirus crisis.

Russian stock indexes were trading higher.

The dollar-denominated RTS index was up 1pc to 1,267.8 points.

The rouble-based MOEX Russian index was 0.8pc higher at 2,858.5 points.