MOSCOW (Reuters) – The Russian rouble edged lower in a relatively narrow range in early trade on Wednesday after weeks of volatility, with domestic investors focused on two OFZ treasury bond auctions the finance ministry is scheduled to hold later in the day.
At 0709 GMT, the rouble was 0.3% weaker against the dollar at 61.76 and was unchanged at 60.75 versus the euro. It had firmed 0.1% against the yuan to 8.50.
After cancelling several weeks of auctions due to market volatility, the finance ministry plans to offer two OFZ bonds on Wednesday, including one with a floating-rate coupon.
Promsvyazbank analysts said the ministry last placed a “floater” in November 2020 and expected high demand at the planned 25-billion-rouble ($404.53 million) placement. Strong demand would support the rouble.
“The external environment for the rouble-denominated bond market remains contradictory,” Promsvyazbank analysts added, pointing to improving global demand for risk assets on the back of U.S. economic data, but with lower oil prices hampering the market.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.6% at $90.6 a barrel, but well away from highs around $98 a barrel reached early last week.
Russian stock indexes opened lower.
The dollar-denominated RTS index was down 2.2% to 1,017.2 points. The rouble-based MOEX Russian index was 1.8% lower at 1,995.8 points.
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($1 = 61.8000 roubles)
(Reporting by Alexander Marrow; Editing by Angus MacSwan)
