Russian rouble nears three-week high versus dollar

MOSCOW: The Russian rouble firmed towards a three-week high against the dollar on Thursday, pricing in a recent recovery in oil prices above $60 per barrel and Russia-specific risks of new possible sanctions.

At 0735 GMT, the rouble was 0.3% stronger against the dollar at 73.75, inching down towards the 73.6150 it hit on Wednesday that was its strongest point since Jan. 21.

Versus the euro, the rouble added 0.2% to 89.43.

External factors will steer the rouble on Thursday as there are no important events planned domestically, said Dmitry Polevoy, head of investment at Locko Invest.

The rouble is likely to stabilise at around 73.80 against the greenback with some attempts to firm further, Polevoy added.

Any gains in the rouble are likely to be capped by the ongoing tensions between Moscow and the West.

The European Union's top diplomat warned Russia it could face new sanctions over the jailing of Kremlin critic Alexei Navalny, describing the government of President Vladimir Putin as "merciless", authoritarian and afraid of democracy.

Brent crude oil, a global benchmark for Russia's main export, was down 0.6% at $61.10 a barrel after hitting $61.69 on Wednesday, its highest since late January 2020.

Russian stock indexes were mixed. The dollar-denominated RTS index was up 0.1% to 1,450.3 points. The rouble-based MOEX Russian index shed 0.2% to 3,394.0 points.

The Russian stock market looks "rather vulnerable" but the stabilisation in the external backdrop and Brent crude above $61 per barrel lower the risk of a decline, Evgeny Loktyukhov, head of research at Promsvyazbank.