Russian rouble falls by more than 1pc, extends earlier losses

A reflection of a yearly chart of US dollars and Russian roubles are seen on rouble notes in this photo illustration taken in Warsaw November 8, 2014. ― Reuters pic
A reflection of a yearly chart of US dollars and Russian roubles are seen on rouble notes in this photo illustration taken in Warsaw November 8, 2014. ― Reuters pic

MOSCOW, April 10 — The Russian rouble extended losses today, opening slightly up in early trade on Tuesday but starting to fall shortly afterwards to lose more than 1 per cent and trade at its lowest since December 2016.

The rouble suffered a massive sell-off yesterday hit by the fresh US sanctions imposed on some of Russian oligarchs and their assets.

At 0720 GMT, the rouble was 1.2 per cent weaker against the dollar at 61.37 and had lost 1.3 per cent to trade at 75.7 versus the euro.

The rising Brent oil prices, benchmark for Moscow’s flagship Urals oil pricing, which were up by 1.2 per cent in early trading, did not help the rouble recover.

Russian stock indexes were also down after opening up in earlier trade.

The dollar-denominated RTS index was down by 1.8 per cent to 1,075 points. The rouble-based MOEX Russian index was 0.1 per cent higher at 2,093.9 points.

Yesterday, the rouble suffered its biggest daily fall in more than three years and stocks in major Russian companies also slid, as investors reacted to a new round of US sanctions targeting some of Russia’s biggest tycoons.

The United States imposed sanctions on seven Russian oligarchs and some of their companies on Friday, including Viktor Vekselberg’s Renova and Oleg Deripaska’s En+ Group , Rusal and some other assets.

Rusal was trading down 7.6 per cent today.

Despite the sell-off, some analysts said it was premature to change the economic forecasts.

“We tend to believe that an impact on economic growth should be fairly limited given that Russia has already deleveraged, and economic policies of the recent years ensured stabilization and de-risking of domestic economy,” Renaissance Capital analysts Oleg Kouzmin and Daniel Salter said in a note. — Reuters

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