Russian rouble slides to five-week low vs dollar

The Russian rouble slipped to a five-week low beyond 81 against the dollar on Friday, hampered by generally lower foreign currency supply and profit-taking going into the weekend, even as oil prices made a slight recovery. Brent was trading near $78 a barrel early this week. Russian stock indexes were lower.

The Russian rouble slipped to a five-week low beyond 81 against the dollar on Friday, hampered by generally lower foreign currency supply and profit-taking going into the weekend, even as oil prices made a slight recovery. By 0724 GMT, the rouble was 0.4% weaker against the dollar at 81.11, earlier hitting 81.46, its weakest point since April 28. It had lost 0.5% to trade at 87.27 versus the euro and shed 0.8% against the yuan to 11.44 .

Some large Russian exporters converting foreign currency revenue to pay dividends have supported the rouble, but the currency usually sees reduced support from FX conversions at the start of each month, after companies have paid month-end taxes. Persistent local demand for foreign currency has hampered the rouble of late. Local investors buying up Western assets plays against the rouble and Western companies still trying to exit the market face growing headwinds.

Drone attacks on Russian territory and incursions along Russia's border with Ukraine have also played a role. Brent crude oil, a global benchmark for Russia's main export, was up 2.5% at $76.10 a barrel. Brent was trading near $78 a barrel early this week.

Russian stock indexes were lower. The dollar-denominated RTS index was down 0.8% to 1,053.5 points. The rouble-based MOEX Russian index was 0.3% lower at 2,712.7 points.

Shares in state-owned lender VTB were 4.1% higher after the bank set the price for its secondary public offering (SPO). Oil major Lukoil's shares slumped 5.7%, following yesterday's deadline for buying shares in time for dividend payments. Alfa Bank analysts said Friday's drop was technical in nature and the dividend gap would be closed.