Russian rouble eases as global growth sentiment slips

MOSCOW: The Russian rouble weakened on Tuesday, hovering near the 73.5 mark against the US dollar, amid rising COVID-19 cases worldwide and signs the economic recovery was losing momentum.

At 0725 GMT, the rouble was 0.3% weaker against the dollar at 73.47, giving up gains it had made late in the previous session.

"On the whole, there are no drivers for strong movement of the rouble," said Alor Broker in a note, expecting the currency to trade between 73 and 74 to the greenback on Tuesday.

It had lost 0.3% to trade at 86.45 versus the euro.

Russian rouble eases as oil prices, risk appetite slip

Brent crude oil, a global benchmark for Russia's main export, was down 0.8% at $68.97 a barrel.

"A trio of factors - slowing growth, COVID resurgence, US Fed tapering risk - continue to test sentiment," said BCS Global Markets in a note.

Speculation is growing that the US Federal Reserve could begin tapering its asset purchases later this year, pushing up yields and supporting the dollar, a negative for the rouble. Fed chair Jerome Powell is speaking later on Tuesday.

Global growth sentiment took a hit on Monday as a raft of Chinese data showed a surprisingly sharp slowdown in the world's second-largest economy, while the New York Federal Reserve's Empire State barometer of manufacturing business activity fell more than expected.

Russian stock indexes were climbing, at their highest since early July.

The dollar-denominated RTS index was up 0.1% at 1,676.4 points, its highest mark since July 6. The rouble-based MOEX Russian index was 0.4% higher at 3,909.9 points.