Markets

Rouble eases with oil; awaits news from St Petersburg forum

  MOSCOW: Lower oil prices pressured the Russian rouble on Wednesday on the eve of a major annual economic confe
Published May 31, 2017 Updated May 31, 2017 12:29pm

 

By 0850 GMT, the rouble eased 0.3 percent to 56.66 against the dollar and shed 0.1 percent to 63.4 versus the euro.

The rouble lacks momentum amid a lull in domestic news flow -- officials tradionally prefer to hold back comments and proceed with new statements at the St. Petersburg economic forum which kicks off on Thursday.

A 0.7 percent decline in Brent crude futures to $51.47 had a negative impact on the commodity-dependent rouble, while support has also ebbed from the end-month tax payments season.

Russian equities were steady to weaker, with the rouble-denominated Micex index down 0.1 percent at 1,930.6, while the dollar-based RTS benchmark slid 0.2 percent to 1,072.3.

The indexes are now targeting new 2017 lows, with the Micex index heading towards 1900, Alor brokerage said in a note.

"While the external background remains moderately negative, indexes will be sliding lower. And if the negative (mood) becomes stronger, we will see another sell-off," Alor said.

 

 

Copyright Reuters, 2017