MOSCOW: The rouble firmed on Tuesday, buoyed by high oil prices and a global increase in risk appetite on hopes that the European Central Bank this week will reveal new measures to ease debt strains in the euro zone. But a late oil price slump left the Russian currency up only marginally on the day.
By 1445 GMT, the rouble had gained 0.3 percent to 32.28 versus the dollar , heading away from its weakest since early August of 32.65 hit last week.
Against the euro, the rouble firmed 0.2 percent to 40.58 and strengthened 0.2 percent to 36.01 against the euro-dollar basket, the central bank's gauge of the currency market.
"The rouble is supported by oil prices and by an improving situation in the external market, particularly thanks to hopes that the ECB and European officials will make active steps to stabilise the markets," said Anton Zakharov, an analyst at Promsvyazbank.
Brent crude futures climbed towards $116 per barrel in the morning, two days before the widely-awaited ECB meeting where its President Mario Draghi is expected to announce some details of a new debt-buying scheme to help deeply indebted euro zone states.
But a $1 slide in the oil price late in the afternoon, after the publication of disappointing US manufacturing data, pared back the rouble's gains.
"Buying of foreign currencies that was seen in August ahead of debt redemptions may have halted, easing downside pressure on the rouble," Zakharov said, adding that the rouble's first technical target is a level of 32.05 per dollar. Analysts said that was the lower boundary of a band in which the rouble hovered in June and July.
According to the central bank data, banks and companies will have to repay around $14 billion in foreign debt in September.
"As a whole I think that the strengthening of the rouble is temporary. The seasonal rise in imports and capital outflows will take their toll, and the Russian currency will resume its descent," said Artem Gavrilov, a trader at Nomos Bank.
The rouble-traded MICEX stock index was down 0.2 percent at 1,436.5 while its dollar-based peer RTS was flat at 1405.9.
"Until there is major news, no substantial swings in the Russian stock markets are expected and the MICEX index will remain at its usual levels," analysts at Alor said in a note.
As a sign of improvement in global stock market conditions, two Russian entities have applied for permission to list shares in London.
MegaFon, Russia's no. 2 mobile phone operator, is eyeing the float of a 20 percent stake which could be worth as much as $4 billion.
The country's No.11 lender Promsvyazbank asked the regulator to approve the listing of up to 25 percent of its shares in London in the form of global depositary receipts (GDR).
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