Strong oil prices could not prevent the rouble erasing gains on Friday as players sought to lock in profits on long positions ahead of an extended weekend. The rouble eased 0.28 percent to 27.84 against the dollar, finishing the trading day on the MICEX exchange 8 kopecks away from its session high and nearly 70 kopecks off its strongest level since late 2008, hit a month ago.
"There was profit taking in pre-holiday trading in long rouble positions which were opened on the back of strong oil prices," said a dealer at a major Western bank in Moscow. Russian markets will be closed on Monday, June 13 for a public holiday. Versus the broadly battered euro, the rouble firmed 0.16 percent to 40.28 and was virtually unchanged at 33.42 versus the euro-dollar, the central bank's main gauge of the currency market.
Boosted by higher oil prices, the rouble gained 0.36 percent versus the dollar in the week to June 10, added 0.43 percent against the euro and 0.42 percent versus the basket. The rouble may still receive support from those players and companies who are interested in "selling dollars at currently high nominal rates," said a dealer at a major Russian bank. Sound fundamentals could also play into the rouble's hands by easing investor fears about the Russian economy.
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