Russian rouble firms on US inflation data, shares near 3-week lows

MOSCOW: Russia's rouble firmed against the dollar on Thursday following U.S. inflation data, but its share indexes were hit by a global market sell-off and slid to three-week lows.

U.S. data showed domestic consumer prices grew by less than analyst forecasts in September, reducing expectations that inflation is accelerating despite a tightening labour market, adding to pressure on the dollar.

The U.S. currency was also hit by President Donald Trump's criticism of the Federal Reserve.

At 1329 GMT the rouble was 0.85 percent stronger against the dollar at 66.33 after hitting 66.16 when the U.S. data was published. It had gained 0.47 percent versus the euro at 76.67.

"A return of turbulence on the global financial markets may well undercut all internal factors that are supportive for the rouble - tax period and strong current account surplus," analysts at Alfa Bank wrote in a note.

Sell-offs across global markets were fuelled by jitters over rising U.S. Treasury yields and solid U.S. economic data that sparked concerns that the Federal Reserve would pick up the pace of its interest rate hikes.

Russian indexes were down to levels last seen in mid-September. The dollar-denominated RTS index was down 1.45 percent at 1,127.47 points. The rouble-based MOEX Russian index was 1.8 percent lower at 2,374.08 points.

"The Russian market on Thursday follows the global trend and is coloured red," Anastasia Popova at BCS brokerage said.

Oil prices also fell, with Brent crude, a global benchmark for Russia's main export, down 1.75 percent at $81.64 a barrel.