MOSCOW: The Russian rouble opened flat on Wednesday as market hopes for a rate cut by the U.S. Federal Reserve subsided.
At 0730 GMT, the rouble was unchanged against the dollar at 62.80 and against the euro at 71.41 .
"Risk-off has become firmly entrenched in global markets this week, including Russia," Alfa-Bank said in a note.
The Russian market was affected by fading investor optimism on a rate cut by the U.S. Federal Reserve after St. Louis Fed President James Bullard downplayed the need for a cut next month, Alfa-Bank said.
The prospect of a Fed rate cut increases demand for emerging-market currencies as investors look for higher-yielding assets.
Oil prices, which usually buttress the Russian currency, rose on Wednesday to their highest in nearly a month as industry data showed U.S. crude stockpiles fell more than expected.
The Russian finance ministry will auction OFZ treasury bonds later on Wednesday, which also often bolsters the rouble.
Russian stock indexes were unchanged.
The dollar-denominated RTS index was flat at 1,379 points, while the rouble-based MOEX Russian index was steady at 2,753 points.
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