Rouble falls as investors focus on Fed meeting

MOSCOW: The Russian rouble slipped against the US dollar on Tuesday, tracking other emergency market currencies as investors turned their attention to a US Federal Reserve meeting where it is expected to reinforce its dovish stance.

At 0740 GMT, the rouble was 0.5pc weaker against the dollar at 71.94 and had lost 0.2pc to trade at 84.27 versus the euro.

The Federal Reserve meets on Tuesday and Wednesday. It could confirm hints about the benefits of an average inflation target, which would allow rates to stay lower for longer.

The rouble was also dragged down by oil prices, which fell on Tuesday as an increasing number of coronavirus cases dampened the outlook for fuel demand and offset investors' optimism about efforts to stimulate the recovery of the US economy.

Brent crude oil, a global benchmark for Russia's main export, was down 0.3pc at $43.55 a barrel by 0736 GMT.

Later on Tuesday the rouble will be losing the boost it had received from Russia's month-end tax period, which usually prompts export-focused companies to convert their foreign currency to meet local duties.

Russian stock indexes were mixed.

The dollar-denominated RTS index was nearly flat at 1,266.5 points.

The rouble-based MOEX Russian index was trading 0.3pc higher at 2,893.6 points.