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MOSCOW: The Russian rouble weakened on Tuesday after reaching three-weeks highs the day before as oil prices fell.

At 0752 GMT, the rouble was down 0.1 percent against the dollar at 65.60 and had lost 0.12 percent to trade at 75.18 versus the euro.

Oil prices dropped as an economic outlook and a surge in US production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries.

Brent crude oil, a global benchmark for Russia's main export, was down 0.61 percent at $66.38 a barrel.

Investors will not invest in rouble assets much before a meeting of Russian President Vladimir Putin and US President Donald Trump, expected to take place at the G20 summit in Argentina in late November, a dealer at a Russian bank said.

The market is also waiting for a central bank decision about the resumption of foreign currency purchases, which it had stopped in August.

First Deputy Governor Ksenia Yudayeva said on Tuesday the central bank would not resume foreign exchange purchases before January and would evaluate the market in December to decide when and how to begin them.

"With the current news background on the horizon of the next days, the dollar/rouble pair can try to consolidate in the range of 65-66 roubles per dollar," Mikhail Poddubsky, an analyst at Promsvyazbank, said in a note.

Russian stock indexes were down.

The dollar-denominated RTS index was down 0.54 percent to 1,129.72 points. The rouble-based MOEX Russian index was 0.91 percent lower at 2,352.28 points.

 

Copyright Reuters, 2018
 

 

 

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