Rouble firms past 69 vs dollar, stocks gain on higher oil prices

MOSCOW: The Russian rouble firmed on Tuesday, crossing the 69 threshold against the U.S. dollar for the first time since early March, as it enjoyed support from higher oil prices and hopes for global economic recovery after the COVID-19 crisis.

At 0753 GMT, the rouble was 0.1pc stronger against the dollar at 69.03 after touching 68.87, its strongest since March 6.

Versus the euro, the rouble gained 0.2pc to 76.81, a level last seen on March 6 before a global sell-off caused by a sharp drop in the price of oil, Russia's key export, and concerns about the novel coronavirus outbreak.

Brent crude oil was up 1.2pc at $38.77 a barrel, climbing higher ahead of the next OPEC+ meeting on June 4 where the world's largest producers will consider extending output cuts into July or August.

In Russia, the government is in focus as on Tuesday it will present to President Vladimir Putin a new plan to shore up the economy hit by low oil prices and the coronavirus.

Russian stock indexes were up.

"The Russian market is poised to extend its gains this morning fuelled by a surge in oil prices, with Brent edging closer to $40/bbl, a strong rouble and optimism that the unlocking of quarantine restrictions can drive an economic recovery," Alfa Bank said in a note.

The dollar-denominated RTS index was up 1.1pc to 1,260.8 points.

The rouble-based MOEX Russian index was 0.5pc higher at 2,763.4 points.