Russian rouble weakens, stocks hit five-month high before retreating

MOSCOW: The Russian rouble weakened on Thursday as oil prices fell, while stocks jumped to a more than five-month high before losing ground.

At 0810 GMT, the rouble was 0.5pc weaker against the dollar at 73.27 and had lost 0.4pc to trade at 86.80 versus the euro.

The weakening US dollar normally plays in the rouble's favour, said Elena Kozhukhova, analyst at Veles Capital, but the Russian currency has ignored this in recent weeks.

A recovery in imports and caution in August due to a history of adverse events have weighed on the rouble.

Brent crude oil, a global benchmark for Russia's main export, was down 0.5pc at $44.96 a barrel, moving away from its strongest level since March 6, hit on Wednesday.

The external background ahead of trading was neutral, said Andrei Kochetkov, an analyst at Otkritie Brokerage, with oil prices initially strengthening and the improving performance of commodity currencies versus the greenback playing against negative dynamics in Asian stock markets.

Market players were focused on US jobless data, expected at 1230 GMT.

Russian stock indexes dipped.

The dollar-denominated RTS index was down 0.8pc at 1,285.7 points.

The rouble-based MOEX Russian index was 0.1pc lower at 2,990.0 points, having earlier broken above the psychological 3,000 point barrier for the first time since Feb. 27.

Shares in TCS Group were up 2.7pc in London after the group reported a 25pc rise in its second-quarter net profit.