Home News Russian Stocks Decline From Almost 5-week Highs As the Rouble Ebbs

Russian Stocks Decline From Almost 5-week Highs As the Rouble Ebbs

Russian Stocks Decline From Almost 5-week Highs As the Rouble Ebbs

The Russian rouble weakened against the dollar ahead of three treasury bond auctions by the finance ministry on Wednesday, hurt by reduced FX supply after the passing of a favorable month-end tax period, but supported by higher oil prices.

At 0738 GMT, the rouble was 0.4% weaker against the dollar at 61.50 and had gained 0.1% to trade at 60.69 versus the euro. It had shed 0.2% against the yuan to 8.42.

The rouble has now lost the support of month-end tax payments, which usually see exporters convert foreign currency revenues to pay local liabilities.

“Today in the course of trading we expect attempts by the rouble to recover its morning losses,” said Banki.ru chief analyst Bogdan Zurich.

“Despite a lower supply of foreign currency from exporters, the rise in oil prices may facilitate purchases in the national currency, which will allow the rouble to make a recovery over the course of the session and try to continue strengthening.”

Brent crude oil, a global benchmark for Russia’s main export, was up 0.7% at $95.3 a barrel.

The finance ministry, which has already exceeded it fourth-quarter borrowing plan, intends to hold another three OFZ treasury bond auctions later on Wednesday.

Russian stock indexes pulled back from recent highs.

The dollar-denominated RTS index was down 0.9% at 1,108.1 points, easing from 1,119.62 points, its strongest since Sept. 30, a level scaled in the previous session.

The rouble-based MOEX Russian index was 0.5% lower at 2,163.3 points, after hitting a near more than a five-week high of 2,185.60 points on Tuesday.

Fiscal Stimulus Bolsters US Economic Growth in Q1, Fastest GDP Growth Since 2003

The second-fastest gross domestic product growth since the third quarter of 2003, reported by the Commerce Department on Thursday, left output just 0.9% shy of its level at the end of 2019.

US Economy Grew Robustly in First Quarter

GDP grew at a 6.4% annual rate in the quarter, leaving the economy within 1% of its peak.

Asia-Pacific Markets Broadly Lower As Investors Turn Cautious

Asia-Pacific markets struggled for gains Friday as investors turned cautious, despite a positive finish stateside in the previous session.

World Shares Near Record High on Strong US Economic Data and Earnings

US economic growth accelerated in the first quarter, fuelled by massive government aid.

How the US Won the Economic Recovery

I looked for a country that got the economic response to Covid-19 right. I found the US.

Barclays Boss Predicts Biggest Economic Boom Since 1948

The UK is about to experience its biggest economic boom since the aftermath of World War Two, according to Barclays boss Jes Staley. His upbeat...

Buying American Is Easier Said Than Done: Will Biden’s Plan Juice the US Economy?

Joe Biden and Donald Trump don't agree on much, but this much they do: We should buy American products. But that's easier said than done.

Silver Down As Dollar and Yields on Bonds Rose as US Economy Advanced

Benchmark U.S. 10-year Treasury yields hovered near a more than two-week high, increasing the opportunity cost of holding non-yielding bullion.

Yellen Doesn’t See Biden Plan Creating Inflation ‘Issue’

President Joe Biden’s economic plan is unlikely to create inflation pressure in the U.S. because the boost to demand will be spread over a decade, said Treasury Secretary Janet Yellen.

Inflationary Pressure, Hawkish Fed Official Remarks Keep US Stocks on Leash

Dow added 2.4%, the S&P 500 gained 5.6%, and the Nasdaq jumped 7%. Dow was down 0.54% at 33,875 while the S&P was down by 0.72%. Nasdaq was down by 0.85%.