Russian rouble edges up on vaccine optimism, stock rally fades

MOSCOW: The Russian rouble held steady in early trade on Thursday, as optimism over COVID-19 vaccines supported risk appetite and offset lingering concerns about the pandemic.

At 0808 GMT, the rouble was 0.3% stronger against the dollar at 73.63, close to a peak hit on Wednesday of 73.0475, the firmest since August.

It had also gained 0.2% to trade at 89.04 versus the euro.

After six sessions of gains, the currency's retreat on Wednesday was a sign that rouble bulls were losing conviction and any negative news could lead to a significant fall, Alexei Antonov, head analyst at Alor Brokerage, said.

"We are still waiting for the dollar-rouble pair to move to the region of 75," he said.

A panel of independent medical experts was set to meet on Thursday to decide whether to recommend that a vaccine from Pfizer Inc and German partner BioNTech SE. should receive emergency use authorisation from the US Food and Drug Administration.

The expected approval, which would improve the outlook for energy demand, means rising oil prices should limit any weakness, if not revitalise risk appetite, BCS Global Markets said in a note.

Brent crude oil, a global benchmark for Russia's main export, was up 0.4% at $49.06 a barrel.

Details on additional US stimulus, a European Central Bank meeting and Brexit negotiations were all in focus.

Russian stock indexes were down, slipping away from multi-month highs hit on Wednesday.

The dollar-denominated RTS index was steady at 1,373.0 points. The rouble-based MOEX Russian index was 0.1% lower at 3,208.9 points, after moving to within a point of an all-time high on Wednesday.