Russian rouble slips as external risks linger; stocks edges higher

MOSCOW: The Russian rouble edged down in early trade on Thursday, held back by lingering geopolitical risks despite higher oil prices and a favourable domestic tax period.

At 0803 GMT, the rouble was 0.1% weaker against the dollar at 73.79 and had lost 0.2% to trade at 88.90 versus the euro, with the threat of new Western sanctions against Moscow continuing to weigh on Russian assets.

Brent crude oil, a global benchmark for Russia's main export, was up 1.1% at $65.03 a barrel, crossing the $65 mark for the first time in more than a year.

"The external story continues to dominate, stimulating active local buying (of foreign currency)," said Locko-Invest analysts in a note.

The rouble should maintain moderate upside potential to reach 72-72.5 against the greenback, but this path may well prove to be winding and thorny due to volatility, they said.

The rouble also had domestic support from a month-end tax period that generally prompts export-focused companies to convert their foreign currency into roubles to meet local liabilities.

Russian stock indexes edged up after a sharp drop in the previous session.

The dollar-denominated RTS index was up 0.6% to 1,471.6 points. The rouble-based MOEX Russian index was 0.3% higher at 3,448.7 points.