MOSCOW: The Russian rouble slid to a more than one-week low against the euro in a volatile start to trading on Wednesday, and hovered near 59 to the dollar before a meeting of OPEC+ producers to discuss a big cut in crude output.
At 0711 GMT, the rouble had lost 2.2% to trade at 57.66 versus the euro, its weakest since Sept. 26.
It was 0.1% weaker against the dollar at 58.99 and had shed 0.6% against the yuan to 8.25.
The rouble has experienced significant swings in recent sessions, hampered by limited liquidity and investors’ concerns that any new sanctions over Russia’s actions in Ukraine could restrict access to foreign currency in Moscow.
The Russian currency hit a near eight-year high of 50.7250 against the euro on Friday. “Volatility of trading in the dollar and especially the euro will remain elevated,” said Alor Broker in a note.
The finance ministry cancelled OFZ treasury bond auctions scheduled for Wednesday, citing continuing financial market volatility.
Russian stock indexes were falling.
Russian rouble leaps to 8-year high vs euro as market awaits sanctions
“The factor of geopolitics has not gone anywhere, so the indices should be clamped in a wide range for some time, however there can be short-term spikes in separate stocks, in particular, in the oil sector that is exposed to higher crude prices,” said BCS Global Markets in a note.
The dollar-denominated RTS index was down 1% to 1,089.3 points.
The rouble-based MOEX Russian index was 0.5% lower at 2,036.5 points.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.1% at $91.9 a barrel.
OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, looks set for deep oil output cuts when it meets on Wednesday, curbing supply in an already tight market despite pressure from the United States and elsewhere to pump more.
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