The Russian rouble weakened further on Tuesday, falling back towards 2015 lows, dragged down by low oil prices and the end of the monthly tax payment period that provides temporary support. At 0740 GMT, the rouble was 0.2 percent weaker against the dollar at 72.38 and down 0.2 percent to 79.39 versus the euro. The rouble remained slightly above a 2015 low of 72.50 against the dollar touched on Monday however, when Brent crude oil fell back below $37 per barrel.
Brent, a global benchmark for Russia's main export, was up 0.1 percent at $36.7 a barrel on Tuesday, but still close to an 11-year low as global oversupply and China's slowing economy weighed on energy markets. [ID: nL3N14I1A0] "After a short pause the rouble is again weakening against the dollar and euro," InstaForex analyst Igor Kovalev said in a note. "Having lost the support of exporters, the currency is again concentrating on the dynamics of oil prices."
Russian companies needed to pay Mineral Extraction Tax on Friday and Profit Tax on Monday, providing temporary support to the rouble as tax payments require companies to convert export earnings into local currency. Russian share indexes were also slightly weaker on Tuesday.
Comments
Comments are closed.