Russian rouble bounces back ahead off World Cup kick off
(Updates with rouble gain, adds quotes, detail)
MOSCOW, June 13 (Reuters) - Russia's rouble bounced off
six-week lows on Wednesday ahead of the World Cup, which some
expect could have a temporary positive impact on the currency.
The Russian market could see up to $3 billion converted by
foreigners during the soccer tournament, which should keep the
rouble from weakening to 64-65 per dollar even if other emerging
currencies fall, Artem Zvonarev, a trader at VTB Capital, said.
The rouble, which is usually largely driven by oil prices
and risk sentiment, gained 0.3 percent to 62.65,
after briefly hitting 63.24, a level last seen on May 8.
Sberbank CIB said in a note it expected export-focused
companies to support the rouble by ramping up FX sales they have
accrued during Russia's holidays on June 11-12.
"We saw some weakening (in the rouble) in the morning as
other emerging currency depreciated in the past few days. But
then (the) offer of dollars appeared on the market," Zvonarev
"Experience of previous World Cups suggests that host
countries' currencies tend to appreciate during the event but
the magnitude of the movement is quite moderate," Nordea Bank
said in a research note.
The economic impact of the games, however, could be
short-lived despite Moscow's hopes that the billions of dollars
spent on preparations will lead to a boost.
The rouble, which has dipped on expectations that major OPEC
and non-OPEC oil producers could decide to increase output at a
meeting this month, gained 0.3 percent to 73.80.
Brent crude, a global benchmark for Russia's main
export, was down 0.3 percent at $75.67 a barrel.
The rouble has been under pressure from increased finance
ministry foreign currency purchases this month, when it plans to
buy the equivalent of 19 billion roubles ($301 million) a day.
Russian stock indexes were steady. The dollar-denominated
RTS index was unchanged at 1,141.96 points, while its
rouble-based MOEX Russian index inched 0.03 percent
higher to 2,272.3 points.
For Russian equities guide see
For Russian treasury bonds see
($1 = 63.1000 roubles)
(Reporting by Andrey Ostroukh and Vladimir Abramov
Editing by Alexander Smith)
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