Russian rouble falls past 75 vs dollar to more than 2-month low

MOSCOW: The Russian rouble fell to a more than two-month low on Thursday, crossing the 75 threshold versus a strengthening US dollar, pushed lower by the downward trend in oil prices.

At 0711 GMT, the rouble was 0.6% weaker against the dollar at 75.18, its weakest mark since May 4.

It had lost 0.7% to trade at 88.72 versus the euro , a more than one-week low.

Making any headway was challenging for the rouble against a strengthening dollar, which was hovering near a three-month high versus major peers after minutes of the Federal Reserve's June policy meeting confirmed the world's biggest central bank is moving toward tapering its asset purchases as soon as this year.

Rouble weakens as Russia readies to step up state FX interventions

Brent crude oil, a global benchmark for Russia's main export, was down 0.2% at $73.27 a barrel.

Oil prices, which have buffeted the rouble this week, were falling for a third day on Thursday amid uncertainty over supply after the collapse this week of talks among major producers which could potentially cause the current output agreement to be abandoned.

Russian annual inflation accelerated in June to 6.5%, its fastest rate since August 2016, well above the bank's 4% target, data showed on Wednesday.

The inflation rise has strengthened the argument for tight monetary policy, BCS Global Markets said in a note.

The central bank is widely expected to raise its key rate from 5.5% on July 23, a move that would lend the rouble some support.

Higher rates, which are designed to keep inflation in check but raise borrowing costs and negatively impact economic growth, provide support for the currency and increase the appeal of bank deposits. Russian stock indexes were falling.

The dollar-denominated RTS index was down 0.9% to 1,626.9 points. The rouble-based MOEX Russian index was 0.4% lower at 3,880.0 points.