Rouble rebounds from near 8-week low as Russia borrows heavily

The rouble has weakened in recent sessions as the market assesses the possible impact of a Western price cap of $60 per barrel on sales of Russian oil. A transition period means buyers of Russian oil should continue to receive it until at least the end of the year, said Alfa Capital analyst Alexander Dzhioev, expecting the Russian currency to trade between 60 and 65 to the dollar in December.

The rouble rebounded from a near eight-week low on Wednesday, as the market assessed the impact of the G7 price cap on Russian oil and the Russian government equalled its record for the largest volume of OFZ bonds sold at a single debt auction.

By 1303 GMT, the rouble was up 0.3% against the dollar at 62.92​​, recovering from its weakest mark since Oct. 14 of 63.4325, hit at market opening. It had lost 0.3% against the yuan to 8.98, and shed 0.1% to 66.22 against the euro​​.

Russia's finance ministry, which has already far exceeded its quarterly borrowing target, sold 750 billion roubles in one of its three auctions on Wednesday, equalling the record set on Nov. 16. The rouble has weakened in recent sessions as the market assesses the possible impact of a Western price cap of $60 per barrel on sales of Russian oil.

A transition period means buyers of Russian oil should continue to receive it until at least the end of the year, said Alfa Capital analyst Alexander Dzhioev, expecting the Russian currency to trade between 60 and 65 to the dollar in December. The worsening situation on energy markets and lower supply of foreign currency from exporters may push the rouble towards the middle of the 63-65 range against the dollar, Banki.ru chief analyst Bogdan Zvarich said.

Brent crude oil, a global benchmark for Russia's main export, was up 0.2% at $79.5 a barrel, but had touched its lowest point since Jan. 3 earlier in the session. Russian stock markets were lower.

The dollar-denominated RTS index was down 0.6% at 1,091.0, while the rouble-based MOEX Russian index fell 0.8% to 2,179.4.