MOSCOW: The Russian rouble slid to a three-week low versus the dollar on Monday as the results of a three-day parliamentary election were finalised, pushed lower by global risk-averse sentiment ahead of this week's U.S. Federal Reserve meeting.
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 at least six people and wounding many others.
By 1228 GMT, the rouble was down 0.9% against the dollar at 73.49, earlier shedding more than 1% to hit 73.59, its weakest mark since Aug. 30.
It had lost 0.7% to trade at 86.05 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.
Rouble steady against dollar, euro as Russians go to the polls
"Markets will likely ignore the results of State Duma elections unless announcing the results is followed by statements from the West about their non-acceptance (which is unlikely to happen)," Dmitry Polevoy, head of investment at Locko Invest, wrote in a note to investors.
A possible increase in protest sentiment following the election would also harm the rouble, said Alor Broker in a note.
Investors are focused on the U.S. 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 2.2% at $73.73 a barrel.
Risk-averse sentiment was also pushing Russian stock indexes lower.
The dollar-denominated RTS index was down 2.7% to 1,697.2 points. The rouble-based MOEX Russian index was 1.9% lower at 3,958.4 points, moving further away from an all-time high 4,081.98 points reached last week.
Metals and mining companies were hit particularly hard. The Russian government is considering imposing a mineral extraction tax (MET) which could add billions of roubles to the state budget, sources have told Reuters.
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