MOSCOW: The Russian rouble hovered near the 73 mark versus the dollar on Thursday, treading water on the eve of a central bank rate decision and against a backdrop of tepid risk appetite.

At 0741 GMT, the rouble was 0.1% weaker against the dollar at 73.18 and had lost 0.1% to trade at 86.54 versus the euro.

The rouble pared losses to recover from a more than one-week low on Wednesday following a successful government bond auction by the finance ministry. It could test 73 to the dollar on Thursday, said Promsvyazbank analysts in a note.

Support may also come from Russia's central bank if it raises rates on Friday, for the fifth time this year, in an effort to rein in consumer inflation.

Annual inflation accelerated further in August towards levels last hit in 2016, data showed on Wednesday.A Reuters poll on Monday suggested the bank would hike by 50 basis points to 7%, though many analysts predicted a 25-basis-point increase.

Brent crude oil, a global benchmark for Russia's main export, was down 0.2% at $72.45 a barrel, pushing Russian stock indexes lower.

The dollar-denominated RTS index was down 0.6% to 1,716.9 points.

The rouble-based MOEX Russian index was 0.7% lower at 3,986.2 points.