Rouble regains ground after hitting weakest level vs dollar since March
- The dollar-denominated RTS index was up 0.8pc to 1,164.9 points.
MOSCOW: The Russian rouble moved towards its weakest level against the dollar since March but soon reversed direction and firmed in early trade on Wednesday, remaining under pressure from mounting risk aversion.
Russian assets have come under selling pressure this week from fears the country would be dragged into the military conflict in the South Caucasus.
Rising coronavirus cases at home also weighed despite Russia's claim that it has completed clinical trials of a second potential vaccine against COVID-19.
At 0726 GMT, the rouble was 0.3pc stronger against the dollar at 78.82 on Wednesday, having briefly touched 79.40, a level close to its weakest point since late March of 79.9750 it hit on Tuesday.
It gained 0.5pc to 92.41 versus the euro, trading near its weakest level since early 2016 of 93.32 it hit on Tuesday.
The rouble may obtain support from state-run companies that have been told to revise the limit of net foreign exchange assets, which in the end should encourage them to buy roubles, Interfax news agency reported late on Tuesday.
It was unclear how wide this conversion of FX from state companies would be.
The finance ministry is in focus as it will test market appetite for its OFZ treasury bonds, popular among foreign investors, and will also disclose its borrowing plan for the fourth quarter.
Brent crude oil, a global benchmark for Russia's main export, was down 0.3pc at $40.71 a barrel, extending losses as rising coronavirus cases prompted global concerns about restrictions on activity that could curb fuel demand.
On the stock market, Russia's top shipping company Sovcomflot was in the spotlight as it announced a plan to sell an up to 17pc stake in new shares in Moscow and raise around $534 million amid globally suppressed risk appetite.
The dollar-denominated RTS index was up 0.8pc to 1,164.9 points.
The rouble-based MOEX Russian index was 0.2pc higher at 2,915.0 points.
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