Rouble retreats from highs as oil, EM currencies slip

MOSCOW: The Russian rouble slipped against the US dollar on Thursday, dragged down by falling oil prices and tracking other emerging-market currencies retreating from highs.

At 1038 GMT, the rouble was 0.6pc weaker against the dollar at 69.07, moving away from the three-month high it hit in the previous day, and had lost 0.3pc to trade at 77.40 versus the euro.

Oil prices dropped on Thursday, reversing gains in the previous session, because of concern over whether major crude producers will agree to extend output cuts.

Prices for Brent crude oil, a global benchmark for Russia's main export, was down 1.6pc at $39.17 a barrel by 0729 GMT.

Despite slipping on Thursday, analysts say the rouble has benefited from investor optimism regarding economic re-openings and economic recovery as lockdown measures to contain the spread of the novel coronavirus begin to be lifted.

"The rouble has strengthened recently as the lifting of pandemic restrictions globally has fueled recovery hopes," Tilmann Kolb, an analyst at UBS Global Wealth Management, said in a note.

"We expect these dynamics to drive further, more measured RUB strength."

Markets are awaiting Friday's US Labor Department jobs report for May, which is expected to show the unemployment rate reaching a post-World War Two high.

On Wednesday, a report showed US private payrolls fell less than expected in May, suggesting layoffs were abating as businesses re-open.

Investors are also focused on a European Central Bank meeting later on Thursday, where policymakers are likely to step up stimulus measures.

Russian stock indexes were trading lower.

The dollar- denominated RTS index was down 1.4pc to 1,283.5 points.

The rouble-based MOEX Russian index was 0.7pc lower at 2,812.4 points.