Rouble heads for 25-mth low, stocks down

MOSCOW: The Russian rouble slid back toward 25-month lows versus the dollar early on Friday, as support from tax payments faded while stocks fell on the back of broader global weakness.

The rouble gave up 0.8 percent to 32.11 against the dollar, moving towards 32.53, and its weakest point since mid-August 2009 hit on Monday.

"The rouble weakens as exporters have reduced conversion (of dollars and euros) after tax payments, and in the environment of elevated volatility investors will unlikely go into the rouble," said Pyotr Grigoryev, a dealer at Nomos bank.

Versus the euro, the rouble eased 0.1 percent to 43.38 and weakened 0.27 percent to 37.18 to the euro-dollar basket, the central bank' main gauge of the currency market.

The downside is being limited by interventions by the central bank, which sells a few hundred million dollars a day in the upper range of the rouble's floating band, last at 32.50-37.50 versus the basket.

Strains on rouble liquidity have eased after companies and banks paid several hundred billion roubles in month-end taxes, with overnight interbank lending rate sliding to 3.7 percent from levels over 5.0 percent seen earlier this month .

Russian stocks hurt by the broadly increased global risk aversion, with data showing that Chinese manufacturing eased for the third straight month adding to concerns over global growth.

The dollar-based RTS index was down 1.7 percent at 1,365.9 points, while the more liquid rouble-traded MICEX lost 1.15 percent to 1,391.5.

EPFR data showed Russia-dedicated funds have shed $443 million in the week to Sept. 28 in its second biggest weekly outflow in two years.

"Year-to-date data for Russia is still positive with a net positive inflow of $846 mln and we believe the next data will be positive, reflecting greater confidence in markets thanks to progress on Greece's bailout," analysts at Urlasib said in a note.