Rouble edges up on higher oil prices

MOSCOW: The Russian rouble firmed slightly on Monday, helped by higher oil prices and investors' hopes for a swift global economic recovery from the downturn caused by the coronavirus pandemic.

At 0720 GMT, the rouble was 0.3pc stronger against the dollar at 68.48 and had also gained 0.3pc to trade at 77.30 versus the euro.

Oil prices climbed on Monday after major producers agreed to extend a deal on record output cuts until the end of July and as China's crude imports hit an all-time high last month.

Prices for Brent crude oil, a global benchmark for Russia's main export, were up 1.4pc at $42.87 a barrel by 0710 GMT.

Although the rouble received a boost from oil prices, analysts say the Russian currency lacks the momentum needed to strengthen further.

"The 68 mark (against the dollar) remains a strong barrier against the rouble's firming," said Alexei Antonov, head analyst at Alor Brokerage. "It needs new drivers to overcome it."

In recent months the central bank has taken measures to buttress the rouble, including daily sales of foreign currency.

The bank, which reports its foreign exchange sales with a two-day lag, said on Friday it had sold 11.3 billion roubles ($165.08 million) worth of foreign currency on June 3.

Investors were hopeful that the economic downturn caused by the coronavirus would be coming to an end after the US economy last week unexpectedly added jobs in May following record losses in the previous month.

Russian stock indexes also nudged up.

The dollar-denominated RTS index was 0.1pc firmer at 1,286.7 points.

The rouble-based MOEX Russian index was 0.2pc higher at 2,796.6 points.