Rouble firms in thin trade after Russia approves third COVID-19 vaccine

MOSCOW: The rouble firmed on Saturday as Moscow approved its third COVID-19 vaccine, amid subdued trading volumes on a rare weekend working day in Russia with international markets closed.

At 0734 GMT, the rouble was 0.3% stronger against the dollar at 73.93 and had gained 0.3% to trade at 89.54 versus the euro.

The threat of new Western sanctions against Moscow continues to hang over Russian assets, limiting gains, but the risk trade had been in play going into the weekend on expectations that U.S. President Joe Biden's proposed $1.9 trillion coronavirus relief package would come to fruition.

Foreign exchange and equities were open for trading on the Moscow Exchange on Saturday, a technical rejig to account for markets being closed next Tuesday for a holiday.

"Expect muted volumes as international markets are closed, though locals may take profit ahead of the holiday," said BCS Global Markets in a note. "Russian markets are open on Monday, re-open on Wednesday."

Russia on Saturday approved a third coronavirus vaccine for domestic use, Prime Minister Mikhail Mishustin said on state TV, though large-scale clinical trials of the shot, labelled CoviVac and produced by the Chumakov Centre, have yet to begin.

Russian stock indexes were falling, with the dollar-denominated RTS index down 0.3% to 1,472.3 points and the rouble-based MOEX Russian index 0.4% lower at 3,457.7 points.

Shares in mining giant Norilsk Nickel were underperforming the wider market, down 0.6%, after a processing plant owned by the company partially collapsed during maintenance in the Arctic, killing one person.