MOSCOW: The Russian rouble firmed slightly on Friday, bouncing off its weakest level since mid-February, hit the previous day as oil prices plunged, while metal companies' shares underperformed the broader market.
The rouble on Thursday largely ignored an address by President Vladimir Putin, who delivered one of his most bellicose speeches in years, saying Russian missiles could hit almost any point in the world and evade a US-built missile shield.
But a drop in prices for oil, Russia's key export, sent the Russian currency to 57.06 to the dollar, a level last seen on Feb. 14.
As of 0733 GMT on Friday, the rouble was 0.3 percent firmer at 56.66 as prices for Brent crude stabilised at $63.80 per barrel, having traded at $67.50 and above earlier this week.
The rouble also lost support from month-end taxes until the second half of March. Taxes usually prompt export-focused companies to convert part of their dollar revenues to meet local liabilities.
VTB Capital said in a note that its model suggests the rouble will average 57.00-57.40 to the dollar in March if oil prices stay at $65 per barrel and global risk sentiment remains unchanged.
Shares in Russian metal companies underperformed, tracking their Asian peers, which came under pressure from concerns about US plans to impose hefty tariffs on imported steel.
Shares in Russian steel producer NLMK shed 1.25 percent, while shares in coal and steel producer Mechel slid 1.30 percent.
The rouble-denominated MOEX benchmark index was down 0.3 percent at 2,290.27, heading away from an all-time high of 2,376.96 it hit on Monday.
Comments
Comments are closed.