Russian rouble weakens past 80 vs dollar for first time in almost a year

The Russian rouble fell to a near one-year low past 80 to the dollar on Thursday as lower foreign exchange supplies and capital outflows combined with limited liquidity to outweigh support from relatively strong oil prices.

At 0812 GMT, the rouble was 0.6% weaker against the dollar at 80.33, its weakest since April 18, 2022.

In the near term, the rouble is likely to continue weakening towards 81 against the dollar, but the potential for a corrective strengthening of the rouble remains, Bank St Petersburg analysts said in a note.

The rouble lost 0.4% to trade at 87.65 versus the euro and shed 0.7% against the yuan to 11.65 .

Brent crude oil, a global benchmark for Russia's main export, was down 0.7% at $84.4 a barrel, but still far higher than last week's levels.

Although higher oil prices usually boost the rouble, tighter foreign exchange supplies are hurting the Russian currency. Month-end tax payments that usually see exporters convert foreign exchange revenues into roubles were due last week.

Analysts say capital outflows from Western investors selling assets, wealthy Russians converting roubles and periodic Eurobond payments that require swift conversion into hard currency, are partially behind the rouble weakness.

Russian stock indexes were higher on Thursday.

The dollar-denominated RTS index was up 0.1% to 988.2 points. The rouble-based MOEX Russian index was 0.8% higher at 2,519.9 points.