MOSCOW: The Russian rouble firmed back towards 74 versus the dollar on Wednesday ahead of two government bond auctions, supported by oil prices hovering above $76 dollars a barrel.

At 0756 GMT, the rouble was 0.3% stronger against the dollar at 74.10 and had gained 0.2% versus the euro to trade at 87.32, its strongest mark since July 6.

The rouble could strengthen to 73 versus the dollar by the end of the week, as exporters needing to pay large dividends are increasing their foreign currency sales, analysts from Sberbank CIB said in a note.

Russian rouble firms towards 74 vs dollar as oil prices edge higher

Brent crude oil, a global benchmark for Russia's main export, was down 0.3% at $76.29 a barrel.

The rouble came under pressure last week on skittish oil prices after the collapse of output talks between the Organization of the Petroleum Exporting Countries and allies including Russia, or OPEC+.

Russia's finance ministry is in focus. It will offer two series of OFZ treasury bonds - the papers that US banks are no longer able to buy directly from Russia because of sanctions. These bonds are popular among foreign investors for their lucrative yields.

Russian rouble weakens as oil prices edge lower

The rouble should strengthen off the back of OFZ auctions, Veles Capital analysts said in a note.

Investors will also have an eye on comments from US Federal Reserve Chairman Jerome Powell later on Wednesday, after data on Tuesday showed that US consumer prices rose by the most in 13 years in June, reinforcing expectations of tapering by the Fed.

Russian stock indexes were falling.

The dollar-denominated RTS index was down 0.8% to 1,635.4 points. The rouble-based MOEX Russian index was 0.8% lower at 3,847.7 points.