MOSCOW: The Russian rouble weakened on Friday, slipping to 72 against the dollar for the first time since July 7, as investor concerns over China-US relations and rising Covid-19 infections worldwide continued to impede risk appetite.
A strengthening dollar and falling oil prices also played against the rouble, as the Russian currency was set to end the week in negative territory. By 1555 GMT, the rouble was 0.5% weaker against the dollar at 71.88, and had lost 0.8% to trade at 82.17 versus the euro, a 10-week low.
Russian stock indexes were mixed. The dollar-denominated RTS index was down 0.3% to 1,216.1 points. The rouble-based MOEX Russian index was 0.5% higher at 2,774.8 points. Some emerging market currencies performed well on Friday, despite pessimism over US-China ties and the high rise in Covid-19 infections in the United States, said Yuri Kravchenko, head of Veles Capital's bank and money market analysis department.
"The fall of the rouble seemed to be the most noticeable against the general emerging market currency background," he said in a note, adding that the correction in oil prices was adding to the pressure.
Fears over the reimposition of lockdown measures following a jump in coronavirus infections in some US states saw the dollar gain from safe-haven inflows. Meanwhile, President Donald Trump's administration is considering banning travel to the United States by all members of the Chinese Communist Party.
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