MOSCOW: The rouble fell sharply on Monday, dragged lower by a renewed slide in oil prices and a sovereign downgrade by rating agency Fitch late on Friday.
At 0740 GMT, the rouble was down 2 percent against the dollar at 62.85 roubles and 3.2 percent weaker against the euro at 74.53.
The Russian currency tracked international oil benchmark Brent, which was down more than 2 percent on Monday at just over $49 per barrel, near a five-and-half-year low.
On Friday, Fitch downgraded Russia's foreign currency bonds to BBB-, one notch above investment grade, citing a significant deterioration in the economic outlook caused by the slump in oil prices and the rouble. Standard & Poor's said last month it expected to complete a review of Russia's rating by mid-January, with a negative outlook, raising the prospect that Russia will lose its investment grade status.
Russian bonds are already trading at "junk" levels.
The yield on the 2030 Eurobond was 7.2 on Monday, up around 25 basis points since Friday but below peaks of 8.3 percent in mid-December and 7.9 percent on Jan. 6.
Russian stock indexes were mixed, reflecting a recent pattern whereby a weaker rouble boosts the rouble-based MICEX index but weighs on the dollar-based RTS.
At 0740 GMT the MICEX was up 1 percent to 1,531 points, while the RTS was down 1.9 percent at 768 points.
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