Rouble steadies ahead of OFZ auctions, MOEX hits record high

MOSCOW: The Russian rouble steadied on Wednesday ahead of government bond auctions, while the MOEX stock index hit a new record high amid a recovery in oil prices.

At 0748 GMT, the rouble was 0.1% stronger against the dollar at 73.42, staying in the 73-74 range for more than a week.

Versus the euro, the rouble was 0.1% firmer at 89.91 , compared to levels of around 80 seen a year ago.

The finance ministry is in focus. It will offer two series of OFZ treasury bonds, the papers that US banks will no longer be able to buy directly from Russia after June 14 because of sanctions.

Yields on 10-year benchmark OFZ bonds, which move inversely with their prices, have stabilised in the 7.1%-7.2% range in the past few weeks, below 2021 highs of 7.4% seen in early April .

"In general, the balance of key factors for the market looks more comfortable now than a few weeks ago, but this hasn't brought buyers, only decrease in market volatility," Rosbank said in a note.

Brent crude oil, a global benchmark for Russia's main export, was up 0.5% at $68.96 a barrel, as worries about an increase in supplies from Iran were offset by optimism about improving US fuel demand.

Russian stock indexes were up, with the rouble-based MOEX Russian index reaching a record high of 3,717.33 points, before retreating to 3,706.6, up 0.5% on the day.

The dollar-denominated RTS index rose 0.6% to 1,589.8 points.

Russia's stock market will climb to fresh highs this year thanks to higher commodity prices and still-low interest rates globally, although there are risks of a downside correction, a Reuters poll of market experts showed.