Rouble retreats from 2-1/2 month peak vs dollar
- Versus the euro, the rouble was 0.2% weaker at 89.42.
MOSCOW: The Russian rouble on Monday slid lower from its highest since mid-March against the dollar, while the MOEX stock index withdrew from an all-time high despite a rise in oil prices.
At 0741 GMT, the rouble was 0.2% weaker against the dollar at 73.31, having hit 73.10 in early trade, its strongest since mid-March, excluding a short-lived move to 72 on the Moscow Exchange on May 7 that traders said was likely to be a trading error in thin holiday volume.
The rouble has returned to levels of mid-March seen before the beginning of the latest sell-off, as the market has priced in the latest wave of US sanctions against Moscow imposed in April. Investors are now bracing for a meeting of Russian and US leaders due on June 16 in Geneva.
Geopolitical risks have intensified again recently after Belarus, a close ally of Russia, scrambled a MiG-29 fighter plane to escort a Ryanair passenger down, and then arrested Roman Protasevich, an opposition blogger.
Western countries accused Belarus of piracy, while Russia said it will still move ahead with a second $500 million loan to Belarus next month.
The old geopolitical risks, such as those related to Ukraine and Nord Stream 2 gas pipeline, have been replaced by new or renewed ones such as Belarus, BCS Brokerage said.
Meanwhile, "economic growth and a stable oil price have been pitted against the risks of inflation and a resurging COVID outbreak - hardly an inspiring backdrop for the local market."
Versus the euro, the rouble was 0.2% weaker at 89.42.
"Today, US markets are closed for a public holiday, so trading activity is going to be low," VTB Capital said in a note.
Brent crude oil, a global benchmark for Russia's main export, was up 1.3% at $69.58 a barrel, which offered little help to the recently rallied Russian stock indexes.
The dollar-denominated RTS index was 0.1% lower at 1,602.8 points. The rouble-based MOEX Russian index shed 0.05% to 3,728.8 points after hitting an all-time high of 3,752.8 on Friday.
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