Russian rouble weakens to over two-week low vs dollar

Brent crude oil, a global benchmark for Russia's main export, was up 0.3% at $78.91 a barrel. Month-end tax payments, which were due earlier this week, usually support the rouble as exporters convert their foreign currency revenues to pay local liabilities.

The Russian rouble weakened to a more than two-week low past 90 to the dollar on Friday, having lost the support of a favourable month-end tax period. At 0805 GMT, the rouble was 0.1% weaker against the dollar at 90.59, earlier hitting 90.7050, its weakest point since Jan. 16.

It had lost 0.7% to trade at 98.60 versus the euro and shed 0.2% against the yuan to 12.59 . "Fundamentally, the rouble does not look strong now," said Alor Broker's Alexei Antonov. "But we still expect relative rouble stability until at least mid-March."

A sharp drop in oil prices pushed the rouble lower in the previous session. Brent crude oil, a global benchmark for Russia's main export, was up 0.3% at $78.91 a barrel.

Month-end tax payments, which were due earlier this week, usually support the rouble as exporters convert their foreign currency revenues to pay local liabilities. State foreign exchange sales have continued to prop up the rouble. The currency could also gain a boost should capital controls requiring exporters to convert foreign currency revenue be extended beyond April 30. Market players are on the lookout for news after the government's proposal for an extension was swiftly opposed by the central bank last week.

Russian stock indexes were lower. The dollar-denominated RTS index was down 0.4% to 1,119.7 points. The rouble-based MOEX Russian index was 0.3% lower at 3,218.9 points.

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