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Markets

Russian rouble mixed as oil dips, dollar gains

Published October 4, 2016 Updated October 4, 2016 09:06am

imageMOSCOW: The Russian rouble was mixed early on Tuesday, falling slightly against the dollar but gaining against the euro, as oil prices fell back and the dollar rose on upbeat U.S. data.

At 0725 GMT, the rouble was 0.2 percent weaker against the dollar at 62.40 but had gained 0.1 percent to trade at 69.70 versus the euro.

The dollar-denominated RTS share index was down 0.2 percent to 1,002 points, while the rouble-based MICEX was less than 0.1 percent lower at 1,985 points.

Analysts said despite a strong start to the week driven by gains in oil prices, Russian assets remained vulnerable.

On Monday, tensions between Moscow and Washington escalated sharply over the Syria conflict and a plutonium accord, and the possibility the U.S. Federal Reserve will tighten monetary policy later in the year is another potential worry.

On Tuesday Brent crude oil, a global benchmark for Russia's main export, slipped 0.8 percent to around $50.5 a barrel. A rise in Iranian exports pressured crude prices, while a planned OPEC-led production cut later this year offered some support.

The U.S. dollar index rose 0.5 percent as factory data on Monday showed the sector was now expanding. That encouraged bets the Fed could raise interest rates as early as this year, pressuring emerging-market currencies worldwide.

Copyright Reuters, 2016

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