MOSCOW: The rouble weakened slightly on Thursday under pressure from lower oil prices and concerns about more U.S. sanctions against Moscow, as the impact of month-end tax payments capped losses.
At 0746 GMT, the rouble was 0.2 percent weaker against the dollar at 65.90 and lost 0.3 percent to trade at 74.95 versus the euro.
Oil prices fell on Thursday amid weakening factory output in China and Japan and record U.S. crude output. Brent crude oil , a global benchmark for Russia's main export, was down 0.50 percent at $66.06 a barrel.
If oil prices do not recover by the evening and with fears of fresh U.S. sanctions priced in, the rouble will extend losses, said a dealer at a major Russian bank in Moscow.
A bill containing new sanctions on Russia over its alleged meddling in U.S. elections and intervention in Ukraine was published on Tuesday.
The rouble retains some support from monthly tax payments that are expected to end on Thursday. Such taxes usually prompt companies to convert foreign currency.
In the short term, the rouble is seen trading within a range of 65.6-66.2 against the dollar, Nordea bank said in a note.
Russian stock indexes inched lower along with oil prices.
The dollar-denominated RTS index was down 0.2 percent at 1,188.50 points, while the rouble-based MOEX Russian index declined 0.2 percent to 2,484.14 points.
Shares in Russia's largest lender Sberbank were in line with the broader market, losing 0.3 percent on the day, after the bank reported a 2.2 percent increase in its fourth-quarter net profit.