Rouble slides to 11-week low vs euro, two-week low vs dollar

MOSCOW: The Russian rouble hit its weakest level against the euro since early May and touched a two-week low versus the US dollar on Monday, pressured by global risk aversion and falling oil prices.

At 0734 GMT, the rouble eased 0.1pc to 82.28 versus the euro after briefly reaching 82.60, a level last seen on May 4.

The rouble was little changed on the day at 71.89 against the dollar after hitting 72.15, its weakest level since July 7.

The theme of sanctions against Russia resurfaced and put pressure on Russian assets after the United States last week imposed sanctions on individuals and entities it said enabled a blacklisted ally of Russian President Vladimir Putin to evade earlier penalties.

"For Russia, sanctions rhetoric may put a dampener on local trade and investors may prefer to take a 'wait and see' approach," BCS brokerage said, predicting low trading volumes this week.

The Russian central bank's rate-setting meeting scheduled for Friday is in focus as the bank will consider cutting the key rate from an already record low of 4.5pc amid an economic crisis sparked by the new coronavirus outbreak.

In the second quarter, the economy shrank by 9.6pc compared with a year ago, while Russians' real disposable income plunged the most in 20 years, highlighting one of the most socially-sensitive issues. Brent crude oil, a global benchmark for Russia's main export, was down 0.9pc at $42.77 a barrel.

Russian stock indexes were also down.

The dollar-denominated RTS index dipped 0.4pc to 1,210.8 points.

The rouble-based MOEX Russian index was 0.4pc lower at 2,765.3 points.