Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Rouble eases towards 62 vs dollar, Severstal shares fall after sanctions

Economy Jun 02, 2022 11:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Woman holds Russian Rouble banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) -The Russian rouble eased towards 62 against the dollar on Thursday, stabilising in a relatively narrow range after sharp and uncontrolled moves last week due to an imbalance of supply and demand on the Moscow Exchange.

The market focus was on a new round of U.S. sanctions against Russia for what it calls a "special military operation" in Ukraine, with targets including 17 individuals, 16 entities, seven vessels and three aircraft.

Shares in steel giant Severstal, which was added to the sanctions list, fell more than 12% to underperform the broader market.

The rouble showed muted reactions, having become the world's best-performing currency http://fingfx.thomsonreuters.com/gfx/rngs/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html so far this year thanks to capital controls that Russia imposed after sending tens of thousands of troops into Ukraine on Feb. 24.

At 1456 GMT, the rouble was 0.6% weaker against the dollar at 61.65 and had eased 1.7% to trade at 65.48 versus the euro.

New gas payment terms for EU consumers that require conversion of foreign currency into roubles and a fall in imports have also supported the Russian currency, helping it to shrug off economic hurdles at home and risks of a looming default on sovereign debt.

Russia's failure to pay $1.9 million in accrued interest on a dollar bond will trigger payouts potentially worth billions of dollars, a panel of investors determined on Wednesday, as the country teeters on its first major external debt default in over a century.

On the domestic bond market, yields on 10-year OFZ treasury bonds fell to 9.08%, their lowest since early 2022, after data showed annual inflation slowed again after soaring to its highest since 2002. Bond yields move inversely with their prices.

"We expect buyers to predominate over the coming days as well, although the decline in yields could slow until next week's inflation data comes out," Sberbank CIB said in a note.

The inflation data raised the chances of another rate cut by the central bank in June-July, Promsvyazbank said in a note.

Russia's central bank slashed its key interest rate to 11% last week and said it saw room for more cuts this year, as inflation slows from more than 20-year highs and the economy heads towards a contraction.

Russian stock indexes were down. The dollar-denominated RTS index fell 2.2% to 1,195.6 points, while the rouble-based MOEX Russian index was 1.5% lower at 2,339.8 points.

Rouble eases towards 62 vs dollar, Severstal shares fall after sanctions
 

Related Articles

Sudden crypto drop sends bitcoin to three-week low
Sudden crypto drop sends bitcoin to three-week low By Reuters - Aug 19, 2022 8

By Tom Westbrook and Hannah Lang SINGAPORE/WASHINGTON (Reuters) -Cryptocurrencies fell sharply on Friday, with sudden selling dragging bitcoin to a three-week low, with analysts...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Saleem Pasha
Saleem Pasha Jun 02, 2022 4:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shezad. Ali
Saleem Pasha
Saleem Pasha Jun 02, 2022 4:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shezad. Ali
Saleem Pasha
Saleem Pasha Jun 02, 2022 4:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shezad ali
Saleem Pasha
Saleem Pasha Jun 02, 2022 4:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shezad ali
Saleem Pasha
Saleem Pasha Jun 02, 2022 4:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shezad. Ali
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email