Russian rouble pares some losses as oil prices edge up

The Russian rouble strengthened on Wednesday ahead of three OFZ treasury bond auctions by the finance ministry, paring some of the previous day's losses as oil prices recovered.

The Russian rouble strengthened on Wednesday ahead of three OFZ treasury bond auctions by the finance ministry, paring some of the previous day's losses as oil prices recovered. At 0710 GMT, the rouble was 0.4% stronger against the dollar at 84.48 and had gained 0.1% to trade at 92.26 versus the euro. It had firmed 0.2% against the yuan to 11.74.

The rouble weakened around 2% against the dollar last week, hitting a more than 14-month low, blighted by volatile swings in a low liquidity market, eliciting comments on the rouble rate from senior officials, who suggested that an exchange rate of 80-90 per dollar was preferable. The rouble should soon gain support from a month-end tax period that usually sees exporters convert foreign exchange revenues to settle local liabilities.

The rouble could strengthen towards 84 during Wednesday's trading, said Banki.ru Chief Analyst Bogdan Zvarich, supported by improving oil prices and increased supply of foreign currency by exporters as they accumulate rouble liquidity to pay taxes. Brent crude oil, a global benchmark for Russia's main export, was up 0.5% at $76.24 a barrel, having dropped sharply late in Russia's previous trading session.

Russian stock indexes were mixed. The dollar-denominated RTS index was up 0.2% to 1,045.4 points. The rouble-based MOEX Russian index was unchanged at 2,803.6 points.

For Russian equities guide see For Russian treasury bonds see