Russian rouble climbs on vaccine optimism, MOEX hits record high

MOSCOW: The Russian rouble climbed on Thursday and the MOEX stock index hit an all-time peak, as optimism over COVID-19 vaccines supported risk appetite and offset lingering concerns about the pandemic.

The rouble has been recovering since the U.S. presidential election in early November, paring losses inflicted by fears Moscow would see new Western sanctions related to the U.S. vote, the suspected poisoning of Kremlin critic Alexei Navalny and a political crisis in neighbouring Belarus.

By 1029 GMT, the rouble was 0.6pc stronger against the dollar at 73.40, close to a peak hit on Wednesday of 73.0475, the firmest since August.

It had also gained 0.5pc to trade at 88.84 versus the euro, ahead of a European Central Bank meeting, the outcome of which analysts said could give additional support to riskier assets.

After six sessions of gains, the currency retreated on Wednesday, which 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 U.S. 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 1.1pc at $49.39 a barrel.

Details on additional U.S. stimulus and Brexit negotiations were also in focus.

Russian stock indexes shrugged off early losses, with the rouble-based MOEX Russian index hitting an all-time high of 3,228.79 points.

By 1029 GMT the dollar-denominated RTS index was up at 1,384.1 points, its highest since Feb. 27. The MOEX was 0.3pc higher at 3,224.8 points.