Russian stock indexes were lower.
The dollar-denominated RTS index was down 2% to
938.9 points. The rouble-based MOEX Russian index was
1.1% lower at 2,264.5 points.
($1 = 75.3700 roubles)
(Reporting by Alexander Marrow; editing by Barbara Lewis,
Tomasz Janowski and Alex Richardson)
(Updates prices, adds second bond auction)
March 15 (Reuters) - The Russian rouble weakened on
lower oil prices on Wednesday, as the finance ministry held debt
auctions and investors looked ahead to this week's interest rate
decision by the Bank of Russia.
By 1241 GMT, the rouble was 0.9% weaker against the dollar
at 75.98 and had gained 0.3% to trade at 80.39
against the euro . It had shed 0.5% against the
yuan to 10.99 .
Brent crude , a global benchmark for Russia's main
export, was down 2% at $75.9 a barrel, its lowest mark since
mid-December.
The rouble hit its strongest level against the dollar since
the start of March early on Tuesday, before easing. The U.S.
currency has come under pressure from fears of a broader banking
crisis following the collapse of Silicon Valley Bank.
Currency interventions are providing some support to the
rouble, as Russia is selling 5.4 billion roubles ($71.7 million)
worth of Chinese yuan per day between March 7 and April 6 to
compensate for lower oil and gas revenues.
Domestic attention is focused on Russia's central bank,
which will set interest rates on Friday and has signalled it
will weigh up hiking rates in the coming months.
Analysts polled by Reuters widely expect the bank to hold
its key interest rate at 7.5% before possibly raising the cost
of borrowing later this year.
Russia's finance ministry sold 74.7 billion roubles in OFZ
treasury bonds at auctions on Wednesday, with one still to come,
after a pause in debt issuance last week.
"Investors will continue to be cautious in the debt market
ahead of this Friday's central bank meeting," said Promsvyazbank
analysts. "With expectations that the key rate will be held, the
regulator's signal will likely remain quite hawkish."
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