Russian rouble falls to weakest since late April to dollar

The Russian rouble hit a nearly three-week low against the dollar ahead of three OFZ treasury bond auctions on Wednesday, on course for its fifth consecutive session of decline under pressure from limited FX supply and sanctions threats. The rouble-based MOEX Russian index was 0.3% higher at 2,642.3 points. Russia's finance ministry will hold three OFZ auctions later on Wednesday.

The Russian rouble hit a nearly three-week low against the dollar ahead of three OFZ treasury bond auctions on Wednesday, on course for its fifth consecutive session of decline under pressure from limited FX supply and sanctions threats. At 0718 GMT, the rouble was 0.2% weaker against the dollar at 80.57, earlier hitting 80.8425, its weakest point since April 28.

It had lost 0.1% to trade at 87.58 versus the euro and shed 0.1% against the yuan to 11.50 . Analysts do not expect the rouble to weaken much more, with month-end tax payments, which usually lead exporters to convert foreign currency revenues to meet local liabilities, approaching.

"A strong resistance point for the (rouble/dollar) pair is around 81.50," said Alexei Antonov of Alor Broker. "It is unlikely to be passed without pausing, in the context of the rouble's current oversold (position)." Lower export earnings have hampered the rouble in recent months, especially as imports, which slumped in 2022, recover.

Meanwhile, leaders of the Group of Seven (G7) nations plan to tighten sanctions on Russia at their summit in Japan this week, with steps aimed at energy and exports that have aided Moscow's military effort in Ukraine, officials with direct knowledge of the discussions said. Russia's budget deficit, which stood at $44 billion for January to April and already above the government's plan for 2023 as a whole, is also putting pressure on the rouble.

Russia is spending heavily as energy revenues nosedive. The country's current account surplus is also narrowing rapidly. Brent crude oil, a global benchmark for Russia's main export, was down 0.8% at $74.30 a barrel.

Russian stock indexes were higher. The dollar-denominated RTS index was up 0.3% to 1,033.7 points. The rouble-based MOEX Russian index was 0.3% higher at 2,642.3 points.

Russia's finance ministry will hold three OFZ auctions later on Wednesday. For Russian equities guide see

For Russian treasury bonds see

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