MOSCOW: The Russian rouble weakened on Monday as global inflation pressure and recession concerns limited appetite for risk, with investors looking ahead to the Bank of Russia’s rate-setting meeting on Friday.
Markets also are awaiting a flurry of other interest rate decisions this week, including from the US Federal Reserve and the European Central Bank.
At 0708 GMT, the rouble was 0.3% weaker against the dollar at 62.63 and had lost 0.4% to trade at 65.79 versus the euro.
It had firmed 0.1% against the yuan to 8.97.
“In the coming days, the rouble will start to receive support from the tax period, but towards the end of the year, demand for FX could grow as a result of investors hedging their rouble positions and building up FX reserves,” Alor Broker said in a note.
The rouble has showed a largely muted reaction to oil price swings in the last week. Volatility has been high as a price cap on Russian oil kicked in. Brent crude oil, a global benchmark for Russia’s main export, was up 0.6% at $76.6 a barrel.
Russian rouble firms towards 62 against dollar
Russian stock indexes were mixed.
“Even the new round of sanctions against Russia, which may be adopted today at the EU Council meeting, most likely will not disturb the stability of the Russian market in general, though there could be some reaction in selected stocks,” said BCS World of Investments.
The dollar-denominated RTS index was down 0.2% to 1,096.5 points.
The rouble-based MOEX Russian index was 0.1% higher at 2,180.5 points.
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