The ruble falls further above 60 against the dollar, hitting its lowest level in two weeks
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MOSCOW, October 6 (Reuters) – The ruble still weakened spent 60 for a dollar thursday having touched a two-week low in early trade as a European Union plan for a Russian oil price cap heightened risks that foreign exchange inflows from Russia could decline.
At 08:21 GMT, the ruble was 0.3% weaker against the dollar at 60.36. RUBUTSTN=MCXafter opening at 60.7775, its lowest rating since Sept. 22.
It remained unchanged at 58.38 against the euro EURRUBTN=MCXalso clipping a two-week low in early trading, and losing 0.9% against the yuan at 8.65 CNYRUBTOM=MCX.
“Continued low activity among exporters, as well as heightened market uncertainty contributed to the ruble’s weakness against the dollar, euro and yuan,” Promsvyazbank analysts said in a note.
Export-oriented companies usually convert their foreign exchange earnings into rubles when local debts need to be paid. Russia’s main fiscal period falls towards the end of the month.
Investors have worried in recent weeks that new sanctions against Russia could restrict dollar and euro trading in Moscow. These fears, which pushed the ruble to a nearly eight-year high against the euro, seem to have subsided for now.
“The depreciation of the ruble is linked to the removal, perhaps temporarily, of the risks of a halt in organized euro and dollar trading in Russia due to Western sanctions,” said Alexei Antonov, analyst at Alor Broker.
The latest EU sanctions package did not seek to restrict currency trading in Moscow, but included a oil price cap for Russian maritime deliveries of crude oil to third countries through European insurers.
Brent crude oil LCOc1a global benchmark for Russia’s main export, rose 0.6% to $93.93 a barrel, after a group of major producing nations, including Russia, announced their biggest supply cut since 2020 before the European Union embargoes on Russian energy.
Russian stock indices were rising.
The dollar-denominated RTS index .IRTS was up 0.6% to 1,068.2 points. Russian ruble-based MOEX index .IMOEX rose 0.9% to 2,048.2 points.
(Reporting by Alexander Marrow; editing by Christian Schmollinger)
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