Rouble rebounds on easing risk aversion, crude strength

MOSCOW: The Russian rouble firmed on Friday, pulling away from a more than five-month low against the US dollar hit in the previous session, as policy support hopes eased risk aversion, while steadying oil prices and month-end tax period also lent support.

At 0755 GMT, the rouble was 0.3pc stronger against the dollar at 76.88 and had gained 0.3pc to trade at 89.75 versus the euro.

The rouble had hit its lowest level since April 22 intraday on Thursday.

Brent crude oil, a global benchmark for Russia's main export, was up 0.3pc at $42.07 a barrel.

"Against a positive external backdrop, we will likely see a corrective strengthening of the rouble today with an attempt to move into the area of 76.5-76.7," said Alor Broker analyst Alexei Antonov in a note.

Uncertain geopolitical risks - the threat of sanctions over the poisoning of Kremlin critic Alexei Navalny, in which Moscow denies wrongdoing, and the crisis in neighbouring Belarus - continued to linger.

Six sources told Reuters on Thursday that sanctions on some Belarusians were imminent, which sent Belarus' government bonds on their biggest decline in over a month.

The market was focused on Sberbank's annual shareholders meeting, a day after Russia's largest lender announced a strategic shift into new technologies and other industries away from banking.

BCS Global Markets said continued foreign currency interventions by the central bank were also helping the rouble, as well as the monthly tax period.

Russia's month-end tax payments are seen limiting losses in the rouble as export-focused companies usually step up conversion of foreign currency in the second half of every month to meet local liabilities.

Russian stock indexes were falling.

The dollar-denominated RTS index was down 0.3pc to 1,185.9.

The rouble-based MOEX Russian index was 0.6pc lower at 2,894.5.