Rouble up from multi-week lows, stocks rise as oil rebounds

MOSCOW: The Russian rouble recovered from multi-week lows in light trade on Monday, firming on the back of rising oil prices which also pushed stock indexes higher.

At 0725 GMT, the rouble was 0.8 percent stronger against the dollar at 67.48, heading away from 68.19, its weakest level since Sept. 17 it his last Friday.

Versus the euro, the rouble firmed 1.2 percent to 76.08 .

Trading activity is likely to be low on Monday, a public holiday in the United States, analysts at VTB Capital said in a note.

The market will be closely watching geopolitical risks, including those related to the possible extension of U.S. sanctions against Moscow.

"The trading of Russian instruments will be as usual carried out with an eye on geopolitics, given that U.S. congressmen are getting back to work this week after the election," said Rosbank, a subsidiary of Societe Generale.

Even though the monthly tax payment period is looming and export-focused companies are expected to convert their dollar revenues to meet liabilities, the rouble is likely to be mostly driven by global markets.

"We still see plenty of room for high volatility to continue and the dollar to retain strength against the EM space," VTB Capital said, referring to the upcoming week.

Prices for oil, Russia's main export, helped Russian assets regain ground as Brent crude futures rose 2.0 percent to $67.40 per barrel.

The dollar-denominated RTS index was up 0.7 percent at 1,129.8 points, while the rouble-based MOEX Russian index  was 0.6 percent higher at 2,417.3 points.