MOSCOW: Russia's rouble fell to a two-week low on Wednesday on emerging market jitters linked to the US-China trade war, as the finance ministry prepared to hold its weekly treasury bond auction that could buttress the currency.
At 0956 GMT, the rouble was 0.6pc weaker against the dollar at 65.11, its lowest since 65.16 on May 14. The Russian currency had lost 0.5pc to trade at 72.61 versus the euro .
The rouble and other emerging market currencies slid on Tuesday after US President Donald Trump said Washington was not yet ready to cut a deal with China that could bring an end to a drawn-out trade dispute.
Chinese newspapers warned on Wednesday that Beijing could use rare earths to strike back at the United States.
"Russian stock indexes and the rouble are under external pressure this morning from the adverse external background and risk avoidance by global investors," said Elena Kozhukhova, an analyst at Veles Capital.
"This means it could continue the downward movement that was seen on Tuesday."
The rouble could receive support when the finance ministry holds its weekly auction of OFZ treasury bonds later on Wednesday.
Rouble-denominated OFZ bonds, which serve as a gauge for global market sentiment, have drawn significant foreign demand in recent months.
Brent crude oil, a global benchmark for Russia's main export, was down 1.4pc at $68.71 a barrel.
Russian stock indexes were mixed.
The dollar-denominated RTS index was down 0.45pc to 1,265.3 points. The rouble-based MOEX Russian index was 0.18pc higher at 2,614.6 points.
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