Rouble falls with other emerging currencies ahead of OPEC+ meeting

MOSCOW: The Russian rouble fell on Thursday, pressured by lingering concerns over new US sanctions against Moscow and mirroring a trend among other emerging market currencies which offset the impact of higher oil prices.

By 1136 GMT, the rouble was 0.7% weaker against the dollar at 76.18, a whisker away from a one-week low and heading further from the more than one-week high of 75.22 hit in the previous session.

It had lost 0.8% to trade at 89.46 versus the euro .

The Russian market remained under pressure from the sanction threat that intensified in the second half of March when US President Joe Biden said Russian President Vladimir Putin will "pay a price" for meddling in US elections and cyber-hacking, allegations that Moscow denies.

"The threat of US sanctions against Russia still hovers like the 'Sword of Damocles', tempering sentiment," BCS Global Markets in a note.

But optimism over the US economic recovery and expectations of OPEC+ extending production curbs into May play on the upside for the Russian market, BCS said.

Bank Saint Petersburg analysts noted general weakness in emerging market currencies and said they expect the rouble to recover to 75 versus the dollar in the medium term.

The rouble soared towards the 75 mark against the dollar on Wednesday after the finance ministry sold 355 billion roubles ($4.68 billion) worth of OFZ treasury bonds at two auctions.

The ministry said late on Wednesday it will offer 1 trillion roubles worth of OFZ bonds in the second quarter, the same amount as in the first three months of 2021.

OFZ bonds have been popular among foreign investors thanks to their yields, but the threat of possible US sanctions against Russian debt may deter some non-residents from holding rouble-denominated bonds.

Russian stock indexes were mixed as Brent crude oil, a global benchmark for the country's main export, was up 0.4% at $62.95 a barrel, ahead of an OPEC+ meeting on the output policy.

The dollar-denominated RTS index was down 0.6% to 1,468.3 points. The rouble-based MOEX Russian index was 0.3% higher at 3,550.9 points, its highest since March 18.