MOSCOW: The rouble weakened against both the dollar and the euro in early trade on Tuesday, extending losses from the previous session and adding further pressure on the central bank ahead of its rate meeting later in the week.
At 0740 GMT, the rouble was 0.41 percent weaker against the dollar at 42.45 and lost 0.6 percent to trade at 53.99 versus the euro.
That left the currency 0.51 percent weaker at 47.65 against the dollar-euro basket the central bank uses to gauge the rouble's nominal exchange rate.
The rouble has fallen over 20 percent this year on falling oil prices, risk aversion towards Russia because of its role in the Ukraine crisis and demand for foreign currency from Russian firms shut out of international capital markets.
The central bank said early on Tuesday it had spent a further $2.4 billion to defend the rouble on Oct. 24, taking the total amount it has spent this month to over $18 billion.
"This is comparable with the relative amount of FX interventions in March," VTB Capital analysts said in a note, referring to the last time the central bank intervened heavily to defend the rouble as the Ukraine crisis escalated.
"However, we highlight one difference: in March the central bank's participation in FX trading exceeded 20 percent only occasionally (during four sessions), while in October the regulator has been visibly present in the market during most trading days."
The central bank's board meets on Oct. 31 to discuss monetary policy, and there is growing speculation it may soon raise rates to support the rouble.
Russian stocks were mixed in early trade on Tuesday. The dollar-denominated RTS index was down 0.1 percent to 1,038 points, while its rouble-based peer MICEX was 0.3 percent higher at 1,398 points.
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