June 8, 2018 / 9:40 AM / 14 days ago

Russian rouble down amid weak oil prices

MOSCOW, June 8 (Reuters) - The Russian rouble eased on Friday as oil prices fell on a weaker China demand and surging U.S. output.

At 0932 GMT, the rouble was 0.52 percent weaker against the dollar at 62.74 and had lost 0.27 percent to trade at 73.84 versus the euro.

Oil prices eased, reversing early gains as signs of weakening demand in China and surging U.S. output weighed on markets despite support from supply woes in Venezuela and OPEC’s production cuts.

But the China data provided good news for Beijing policymakers as they deal with tough trade negotiations with Washington.

Brent crude oil, a global benchmark for Russia’s main export, was down 0.34 percent at $77.06 a barrel.

The global risk appetite towards the emerging markets has narrowed, which has also partially affected the Russian market, analysts at Rosbank said in a note.

“Even the macroeconomic advantages haven’t yet pushed non-residents to move their investments into Russian risk (from other emerging markets),” Rosbank said, adding that Russian assets would be still affected by global markets moods.

The rouble felt support from market expectations that the Central Bank would not cut its key rate on June 15 as inflation risks had increased because of the rise in oil product prices in May.

The finance ministry has proposed increasing the maximum level of export duty for light oil products to 90 percent as an emergency measure to tackle spikes in gasoline and diesel prices.

“We believe that the Central Bank may take a pause before the situation with specific government measures will be clarified,” analysts at Rosbank said on Friday.

Russian stock indexes were down.

The dollar-denominated RTS index was down 1.17 percent to 1,156 points. The rouble-based MOEX Russian index was 0.46 percent lower at 2,305 points.

For Russian equities guide see

For Russian treasury bonds see (Reporting by Polina Nikolskaya Editing by Jon Boyle)

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