MOSCOW: The Russian rouble fell to a six-week low against the US dollar on Monday as importers' demand for foreign currency and fears over potential new British sanctions outweighed rising oil prices.
Even as the rouble slipped, Russian stocks remained strong, with the rouble-based MOEX Russian index climbing to a four-month high, boosted by rising commodities prices.
By 0832 GMT, the rouble was 0.5% weaker against the dollar at 71.73, its lowest since May 25.
It had lost 0.8% to trade at 80.94 versus the euro, a two-month low.
Russian stock indexes were rising.
The dollar-denominated RTS index was up 1.5% to 1,253.3 points. The MOEX index was 1.9% higher at 2,854.2 points.
Brent crude oil, a global benchmark for Russia's main export, was up 1.8% at $43.56 a barrel.
The reopening of economies around the world played in risk assets' favour, although record increases in coronavirus cases in 15 US states in the first four days of July clouded the economic horizon and prevented a speedy return to thriving business activity.
Domestically, growing demand for imports on recovering business activity and the start of a dividend payout period for companies that have not changed their policies in the wake of the coronavirus crisis also played against the rouble, said Dmitry Polevoy, chief economist at the Russian Direct Investment Fund.
Certain Russian individuals could face asset freezes and visa bans from the United Kingdom from Monday, with Britain set to list the first foreign nationals included in its new post-Brexit sanctions scheme that follows the 2012 US Magnitsky Act.
"Sanctions risks, coupled with a low oil price and a fall in the volume of its exports, are the main threat to the Russian currency," said Alexei Antonov, head analyst at Alor Brokerage.
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