Rouble weakens past 90 vs euro as sanction threat dominates

MOSCOW: The Russian rouble slid past the 76 mark against the dollar and 90 against the euro on Tuesday, as the market awaited new U.S. sanctions against Moscow, while stocks indexes dipped on lower oil prices.

Russian assets have been under pressure since last week as the country braces for a new round of U.S. sanctions over alleged election meddling, which Moscow denies.

Foreign and local players could take defensive positions in the rouble until more clarity over the possible sanctions transpires, said Dmitry Polevoy, head of investment at Locko Invest.

As of 0947 GMT, the rouble was 1.5% weaker against the dollar at 76.06, a level last seen on Feb. 3.

The rouble is at risk of testing levels of 76-76.50 against the dollar in the coming days, Otkritie Bank said in a note.

Against the euro, the rouble shed 1.2% to 90.49 , its weakest since early March.

U.S. President Joe Biden has said Russian President Vladimir Putin will "pay a price" and is expected to impose sanctions as soon as this week that could range from freezing the U.S. assets of Russians to curbing Moscow's ability to issue sovereign debt.

Losses in the rouble were capped by Russia's month-end tax payments that usually prompt export-focused companies to convert their dollar revenues to meet local liabilities.

Russian stock indexes were down as Brent crude oil, a global benchmark for Russia's main export, slid 3.3% to $62.49 a barrel.

The Russian market came under pressure from lower oil prices, fears that U.S. sanctions could target Russian debt and the central bank's decision to raise rates, Sberbank Asset Management said.

The dollar-denominated RTS index fell 2.5% to 1,431.3 points. The rouble-based MOEX Russian index was 0.9% lower at 3,457.3 points, having hit an all-time high of 3,602.18 last week.