Deals

Rouble falls again, Russian stocks recover after sell-off

2 minute read
Register now for FREE unlimited access to Reuters.com

MOSCOW, Nov 24 (Reuters) - The Russian rouble fell again on Wednesday, moving towards its weakest point since mid-2021 under pressure from geopolitical woes, while higher oil prices helped stock indexes pare recent losses.

The rouble has lost 8% of its value against the dollar in four weeks, slipping from a multi-month peak of 69.21 hit in late October due to selling pressure related to Western concerns over possible Russian military intervention in Ukraine. read more

At 1000 GMT, the rouble was 0.6% weaker against the dollar at 74.69 , heading towards its weakest since July 8 of 75.2925 it hit on Tuesday. read more

Register now for FREE unlimited access to Reuters.com

Versus the euro, the rouble eased 0.2% to 83.66 .

The Kremlin played down the importance of the rouble slide, saying it saw no reasons for "excessive alarmism", having repeatedly dismissed suggestions that Russia was considering intervening in Ukraine as inflammatory.

Russia has also complained about increasing activity in the region by the NATO military alliance and likened the situation in Ukraine to the lead-up to the war in Georgia in 2008.

"For now, all depends on geopolitical news ... If this topic drops from front pages, even if just temporarily, markets will have chances to continue recovering," Evgeniy Suvorov, an economist at CentroCreditBank, said on his Telegram channel MMI.

On the domestic front, the rouble retains support from economic fundamentals, such as a strong current account surplus.

The rouble also received support from export-focused companies that were selling foreign exchange before the mineral extraction tax was due to be paid on Thursday, VTB Capital said.

Russian stock indexes were mixed.

The dollar-denominated RTS index (.IRTS) rose 0.6% to 1,671.9 points. The rouble-based MOEX Russian index (.IMOEX) was flat at 3,959.6 points, hovering below the 4,000 threshold it fell below on Monday.

Depositary receipts in Russian lender TCS Group at first outperformed the market after a strong earnings report but then pared gains and were flat on the day in line with the MOEX. read more

Register now for FREE unlimited access to Reuters.com
Reporting by Andrey Ostroukh; Editing by David Goodman, Edmund Blair and Emelia Sithole-Matarise

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters