Rouble recovers after sharp drop, stocks down

Rouble was 0.2% stronger against the dollar at 70.49

  
An employee holds 1000 Russian Roubles notes at Goznak printing factory in Moscow, Russia July 11, 2019.

An employee holds 1000 Russian Roubles notes at Goznak printing factory in Moscow, Russia July 11, 2019.

REUTERS/Maxim Shemetov

The Russian rouble firmed on Thursday, recouping sharp losses of the previous session when it fell from a 16-month high versus the dollar, while stocks indexes extended their slide.

At 0754 GMT, the rouble was 0.2% stronger against the dollar at 70.49 RUBUTSTN=MCX . It had hit its strongest level since June 2020 of 69.21 on Tuesday.

Against the euro, the rouble was 0.1% firmer at 81.85 EURRUBTN=MCX after weakening from its 2021 peak of 80.42 touched earlier this week.

The rouble underperformed its peers as Russia's tax period ended, VTB Capital said. Taxes usually prompt export-focused companies to convert their FX revenues into rouble to meet local liabilities.

The spread of COVID-19 in Russia is in focus as the number of daily cases exceeded 40,000 for the first time and the death toll was at a record high.

The Russian capital brought in its strictest lockdown measures since June 2020 on Thursday as hospitals confronted a rising wave of coronavirus cases.

Brent crude oil LCOc1 , a global benchmark for Russia's main export, was down 0.9% at $83.79 a barrel amid a surprise jump in U.S. inventories of crude and as rising cases of COVID-19 in Europe, Russia, and some outbreaks of infections in China dented hopes for an economic recovery. O/R

Russian stock indexes were down.

The dollar-denominated RTS index .IRTS shed 1% to 1,872.2 points. The rouble-based MOEX index .IMOEX fell 0.9% to 4,189.3 points.

Shares in Sberbank SBER.MM were down 0.6% on the day after Russia's largest lender reported a record net profit of 348.3 billion roubles ($4.9 billion) for the third quarter.

(Reporting by Andrey Ostroukh; Editing by Subhranshu Sahu)


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