Rouble slips as falling oil prices outweigh demand for EM currencies

MOSCOW: The Russian rouble slipped in early trade on Monday as falling oil prices outweighed a pick up in demand for emerging market currencies.

By 0735 GMT, the rouble had fallen 0.2pc against the dollar to 75.92 after a slightly stronger open.

The Russian currency had lost 0.1pc to trade at 89.81 versus the euro.

Oil prices fell on Monday because of the potential resumption of output from Libya.

A global increase in coronavirus cases also added to worries about global oil demand, but a tropical storm heading for the Gulf of Mexico limited losses.

Brent crude oil, a global benchmark for Russia's main export, was down 1.4pc at $42.53 a barrel.

Analysts said they expected the rouble to attempt to firm on Monday as export-focused companies prepared to convert their foreign currency to pay local taxes, which is expected to peak later this week.

Alexei Antonov, an analyst at Alor brokerage, said the rouble would attempt to strengthen on Monday but would remain above 75 against the dollar.

Russian stock indexes were trading lower.

The dollar-denominated RTS index was down 1.3pc to 1,212.7 points.

The rouble-based MOEX Russian index was 1pc lower at 2,922.5 points.