Russian rouble sinks to near two-week low after parliamentary election

MOSCOW: The Russian rouble fell to a near two-week low versus the dollar on Monday as the results of a three-day parliamentary election were finalised, hurt by limited risk appetite globally as investors awaited a US Federal Reserve meeting this week.

Already weaker on the day, the rouble lost more ground after reports emerged of a gunman opening fire at a university in the Russian city of Perm, killing five and wounding six others.

By 0805 GMT, the rouble was 0.7% weaker against the dollar at 73.42, its weakest mark since Sept. 8.

It had lost 0.6% to trade at 85.95 versus the euro.

"With few drivers for growth, an ailing external background, and indices floating near all-time highs, prospects for the local market this week look slim," said BCS Global Markets.

Russia's ruling United Russia party, which supports President Vladimir Putin, retained its parliamentary majority after an election and a sweeping crackdown on its critics, but opponents alleged widespread fraud.

Risks for the rouble in the wake of Duma elections include a possible increase in protest sentiment and any non-recognition of the results by the West, said Alor Broker in a note.

Investors are focused on the US Federal Reserve's Sept. 21-22 meeting, bracing for the Fed to take another step towards tapering stimulus.

Brent crude oil, a global benchmark for Russia's main export, was down 1.1% at $74.54 a barrel, pushing Russian stock indexes lower.

The dollar-denominated RTS index was down 1.9% to 1,711.8 points. The rouble-based MOEX Russian index was 1.1% lower at 3,989.6 points, moving further away from an all-time high 4,081.98 points reached last week.