MOSCOW: Russia's rouble fell sharply on Monday, hitting a three-month low against the dollar as oil prices dived on OPEC members failing to agree on output targets to reduce a global oil glut.
At 1545 GMT, the rouble was 1.4 percent weaker against the dollar at 69.08 and lost 1.2 percent to trade at 74.91 versus the euro. It broke through 69 to the dollar for the first time since September.
Brent crude oil, an international benchmark for Russia's main export, fell 4 percent to $41.3 a barrel, near its lowest in almost seven years.
The OPEC oil-producing group failed to agree in its policy meeting on Friday to lower production in an attempt to stem prices that have dropped more than 60 percent since June 2014.
A stronger dollar on global markets added to pain for oil and the rouble on Monday.
"There are currently no reasons to buy the rouble given negative commodity market dynamics," analysts at Bank Zenit said in a note. "The heavy foreign-debt repayment schedule in December also isn't in the Russian currency's favour."
Market attention will soon turn to a monetary policy decision by Russia's central bank due on Friday.
The central bank is seen leaving rates on hold as a ban on some Turkish food imports adds to worries over stubbornly high inflation, although the result is not clear cut.
Russian share indexes also slumped in trading soured by the steep fall in oil prices.
The dollar-denominated RTS index was down 2.5 percent to 791 points, while its rouble-based peer MICEX traded 1.2 percent lower at 1,735 points.
Comments
Comments are closed for this article.