Rouble firms below 77 vs dollar as market awaits vaccine

MOSCOW: The Russian rouble firmed on Thursday, helped by relatively high oil prices and export-focused companies converting their foreign currency revenues, while investors waited for more information over potential COVID-19 vaccines.

The rouble has had a volatile few weeks, plunging to its lowest level versus the euro since late 2014 on the eve of the US election and then posting its biggest one-day gain against the dollar in four years the day after the vote.

By 1144 GMT, the rouble was 0.3% stronger against the dollar at 76.91 and had lost 0.1% versus the euro, trading at 90.87.

"After the excessive weakening of the rouble yesterday, it may be possible to recover to 76.5 to the dollar today, but for now there are no triggers for more substantial growth," said Sberbank CIB in a note.

With a month-end tax period approaching, some exporters have been taking advantage of the recent rouble weakening to convert foreign currency revenues, buttressing the Russian currency.

Against this backdrop, Russia's finance ministry has tapped the global debt market for the first time this year.

Hopes of a vaccine against COVID-19 lifted global markets and risk appetite this week, after Pfizer said on Monday that its vaccine was more than 90% effective.

Russia said on Thursday its own Sputnik V vaccine was 92% effective, while reporting a record daily high of 439 deaths from the virus.

"The euphoria that has swung global markets higher of late, like the inevitability of a pendulum, appears to have peaked and (is) now set to begin a corrective course," said BCS Global Markets. It added that momentum could soon swing back.

Russian stock indexes were paring losses, after reaching around two-month highs in the previous session as Brent crude oil, a global benchmark for Russia's main export, rose 0.2% to $43.87 a barrel.

The dollar-denominated RTS index was up 0.1% to 1,235.2 points. The rouble-based MOEX Russian index was 0.1% higher at 3016.6 points.

Shares in Russia's top gold producer Polyus outperformed the wider market after strong quarterly results, but TCS Group, the parent company of Russia's leading private bank Tinkoff, saw its Moscow GDRs slip.