Rouble stable ahead of bond auctions, Fed meeting

MOSCOW: The rouble held steady against the US dollar on Wednesday as investors cautiously awaited the US Federal Reserve's next move and bond auctions by the Russian finance ministry that generally buttress the national currency.

At 0730 GMT, the rouble was almost flat against the dollar at 68.58 and had lost 0.2pc to trade at 77.85 versus the euro.

The Russian finance ministry is set to auction two series of OFZ treasury paper maturing in 2024 and 2025.

Demand for these bonds, which has been strong among foreign investors, serves as a gauge of global market sentiment towards Russian assets.

Global markets are also awaiting a US Federal Reserve meeting later on Wednesday to see how it assesses surprisingly positive jobs figures released last week.

Oil prices, which had helped the rouble firm in recent days, fell on Wednesday after a rise in crude and fuel stockpiles in the United States reignited fears about potential oversupply and falling fuel demand during the coronavirus pandemic.

Brent crude oil, a global benchmark for Russia's main export, was down 1.4pc at $40.60 a barrel by 0724 GMT.

The Russian central bank has taken several measures to support the national currency, including through its daily sales of foreign currency.

On Tuesday the bank said it had sold the equivalent of 10.2 billion roubles ($148.99 million) on June 5.

Russian stock indexes were trading lower.

The dollar-denominated RTS index was down 0.5pc to 1,277.5 points.

The rouble-based MOEX Russian index was 0.5pc lower at 2,780.8 points.