MOSCOW: The Russian rouble firmed on Wednesday as the finance ministry held a treasury bond auction, helped by oil prices rebounding above $75 per barrel, but amid caution ahead of the U.S. Federal Reserve's policy decision.
By 1120 GMT, the rouble was 0.4% stronger against the dollar at 72.77 and had gained 0.3% to trade at 85.37 versus the euro.
The outcome of the Fed's meeting will be announced at 1800 GMT with a news conference half an hour later. Most analysts think the Fed will not go into detail about its tapering plans.
Sberbank CIB analysts said that they expected the dollar to strengthen after the Fed meeting and that the rouble might weaken to the 73.6 mark and possibly further.
Russian officials on Tuesday said Russia would spend around 2.5 trillion roubles ($34 billion) from its National Wealth Fund in the next three years to help revive economic growth.
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The economy is expected to grow by an average of 3% from 2022-24, the economy ministry said on Tuesday, with economic expansion constrained by central bank rate hikes aimed at curbing inflation.
The finance ministry raised 15 billion roubles ($206 million) by auctioning one OFZ treasury bond on Wednesday, while demand reached 38.1 billion roubles.
OFZs, which Russia uses to plug budget holes, have regained popularity among foreign investors as concerns about sanctions have waned and on expectations their prices could rise higher once the central bank starts cutting rates at some point next year.
Brent crude oil, a global benchmark for Russia's main export, was up 1.3% at $75.36 a barrel, supporting Russian stock indexes.
The dollar-denominated RTS index was up 1.6% to 1,738.5 points. The rouble-based MOEX Russian index was 1.1% higher at 4,015.5 points.
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