Advertisement

Russian rouble hits more than 3-week low near 71 vs dollar

Jan 31 (Reuters) - The rouble slipped to a more than three-week low near 71 against the dollar early on Tuesday, as the Russian currency traded after a favourable month-end tax period and foreign currency interventions offered only limited support.

At 0755 GMT, the rouble was 0.1% stronger against the dollar at 70.33, after hitting 70.83 in early trade, its weakest mark since Jan. 9.

It had gained 0.4% to trade at 76.30 versus the euro and had shed 0.2% against the yuan to 10.43 .

With payments made on Jan. 30, the rouble has now lost support from month-end taxes, when exporters convert foreign exchange revenue to pay local liabilities.

The rouble does have the support of foreign currency sales by the government, which is offloading up to 3.2 billion roubles ($45.45 million) worth of Chinese yuan per day, but analysts have said the impact on the rouble is limited.

"A negative mood dominates in the FX segment at the moment, which raises the likelihood of short term moves towards a weaker rouble," Rosbank Research analysts said in a note.

"Consistent pressure on the geopolitical front and fears related to the consequences of the price ceiling on oil products are having their say," Rosbank added.

The rouble has been under external pressure since a Western price cap on Russia's oil sales came into force in early December alongside a European Union embargo on buying sea-borne Russian oil, forcing Moscow to sell at a discount.

Brent crude oil, the global benchmark for Russia's main export, was steady at $84.90 a barrel.

Russian stock indexes were higher.

The dollar-denominated RTS index was up 0.5% to 992.2 points. The rouble-based MOEX Russian index was 0.5% higher at 2,215.4 points.

Moscow-listed depositary receipts in retailer O'Key Group were down 3.6% after the company said it expects its chain of discount stores to soon account for half of its overall revenue as shoppers increasingly seek cheaper goods amid economic contraction and high inflation.

For Russian equities guide see

For Russian treasury bonds see ($1 = 70.4000 roubles) (Reporting by Alexander Marrow; editing by Jason Neely)