👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Rouble slips as Putin addresses forum in Russia's far east

Published 09/07/2022, 04:26 AM
Updated 09/07/2022, 04:30 AM
© Reuters. A Russian one rouble coin is pictured in front of a tower of the Kremlin and St. Basil's Cathedral in Moscow, Russia, in this illustration picture taken June 24, 2022. REUTERS/Maxim Shemetov/Illustration/File Photo
GAZP
-

MOSCOW (Reuters) - The rouble opened weaker on Wednesday, under pressure from lower oil prices, as President Vladimir Putin told an economic forum in Russia's far east that the West's futile and aggressive attempts to isolate Russia with sanctions were failing.

Putin, speaking at Russia's Eastern Economic Forum in the Pacific city of Vladivostok, said the West's efforts were destroying the global economy just as Asia was rising to claim the future.

At 0748 GMT, the rouble was 0.1% weaker against the dollar at 61.28 and had lost 0.4% to trade at 60.66 versus the euro.

The rouble may test the 61.5 mark to the greenback today against the backdrop of oil prices under pressure, said Promsvyazbank analysts in a note.

This year, the rouble has been the world's best-performing currency, buoyed by emergency capital controls rolled out by the central bank in a bid to halt a mass sell-off after Feb. 24 when Russia began what it calls "a special military operation" in Ukraine.

This helped to avoid an economic meltdown that many had predicted and has allowed Russian officials to make more positive forecasts about the health of the economy.

In Vladivostok this week, Russia's top two banks said the banking sector had overcome the worst in terms of the fallout from sanctions, with VTB CEO Andrei Kostin saying banks likely no longer need capitalisation.

Russian stocks were falling, after the benchmark MOEX index struck a more than four-month high of 2,492.15 points in the previous session.

The index received support last week from gas giant Gazprom (MCX:GAZP) which reported record net profit in the first half of 2022 and recommended paying interim dividends after skipping its annual payout for the first time since 1998.

© Reuters. A Russian one rouble coin is pictured in front of a tower of the Kremlin and St. Basil's Cathedral in Moscow, Russia, in this illustration picture taken June 24, 2022. REUTERS/Maxim Shemetov/Illustration/File Photo

"Russian equities saw profit taking after Moscow Exchange announced it would provide equity market access to non-residents from friendly states from 12 September, triggering overhang fears," said Alfa Bank Equity Strategist John Walsh in a note.

The rouble-based MOEX Russian index was 0.4% lower at 2,416.1 points. The dollar-denominated RTS index was down 0.8% to 1,242.4 points.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.