MOSCOW: The Russian rouble edged lower on Wednesday, weighed down by a stronger dollar and weaker oil prices.
The dollar was near a three-week high against a basket of currencies after upbeat views from Federal Reserve Chairman Jerome Powell on the economy encouraged bets on further Fed interest rate hikes this year.
"The negative reaction on the stock markets, the rise of the dollar and the decline in US Treasuries looked logical, resulting in the weakening of the most currencies, including the rouble," analyst at ING said in a note.
At 0833 GMT, the rouble was 0.29 percent weaker against the dollar at 56.44 and was flat against the euro at 68.89.
Oil prices fell as weak Chinese and Japanese industrial data triggered concerns of an economic slowdown that could lower demand.
Brent crude oil, a global benchmark for Russia's main export, was down 0.45 percent at $66.33 a barrel.
Support to the rouble came from month-end tax payments in Russia, which began on Feb. 15 and will run to the end of the month. To meet these duties, Russian export-focused companies usually convert their dollar revenues.
Markets awaited two large auctions by the Russian Finance Ministry of OFZ treasury bonds worth 50 billion roubles ($887 million) on Wednesday.
OFZ bonds are in focus after S&P Global raised Russia's sovereign rating to an investment grade, boosting demand for Russian assets.
Russian stock indexes were down.
The dollar-denominated RTS index was down 1.0 percent to 1,296.80 points. The rouble-based MOEX Russian index was 0.81 percent lower at 2,322.85 points.
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