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The Russian rouble recovered from three-week lows against the US dollar on Wednesday, shrugging off a deeper slide in oil prices and paring earlier losses along with other emerging market currencies. At 1446 GMT, the rouble was 0.05% stronger on the day at 65.24, heading away from 65.57 against the dollar, its weakest level since September 11. Versus the euro, the rouble lost 0.1% to 71.43.

The rouble gained some support on hopes that a breakthrough at talks between Moscow and Kiev has opened the way to the first international summit in three years being convened on ending fighting in east Ukraine. The rouble also gained support from a weekly auction of OFZ treasury bonds. The finance ministry raised 21.1 billion roubles ($323.42 million) by selling OFZ bonds maturing in 2030, while bets totalled 45.2 billion roubles.

Market demand for OFZ bonds is usually seen as a gauge of investor sentiment towards Russian assets. Russian stock indexes were down as oil prices extended losses. Brent crude futures were down 1.7% at $57.89 per barrel. The dollar-denominated RTS index slid 1.0% to 1,315.8 points. The rouble-based MOEX Russian index was 1.3% lower at 2,724.44 points.

Earlier this week, the rouble and other emerging-market currencies came under pressure from global economic concerns after a report showed US manufacturing contracted in September to its weakest level in more than a decade amid trade tensions between China and the United States. The rouble's room for strengthening is limited by expectations of an increase in state foreign-currency purchases.

Copyright Reuters, 2019


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