MOSCOW: The Russian rouble edged higher on Wednesday as exporters sold foreign currency before upcoming tax payments, but Moscow-listed shares slipped after steep falls on Asian markets. At 0742 GMT, the rouble was 0.2 percent stronger against the dollar at 57.58 and had gained a similar amount to trade at 62.22 versus the euro. Currency traders said the rouble was bucking a global trend for emerging-market currencies to weaken because the bulk of Russia’s end-of-month taxes fall due early next week, before which exporters convert some of their dollar revenues to make the rouble-denominated payments.
Russia’s dollar-denominated RTS share index was down 0.8 percent to 1,113 points, while the rouble-based MICEX was 0.6 percent lower at 2,034 points. Equity analysts said Russian markets were taking their lead from Asia and the United States, where stock markets fell sharply on Tuesday. Global investors dumped risky assets and rushed to safe havens such as gold and government debt amid growing doubts about U.S. President Donald Trump’s economic growth agenda.
A further negative for Russian assets is that oil prices fell on Tuesday and added to those losses on Wednesday, as rising U.S. crude stocks underscored a global fuel supply overhang. Brent crude oil, a global benchmark for Russia’s main export, was down 0.4 percent at around $50.8 a barrel by 0742 GMT. Mark Bradford at Russian brokerage BCS said in a note: “Optimism is fading and risky assets are under pressure.”
