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Russian rouble slips as Fed rate cut supports dollar

Thu, 19th Sep 2019 08:43

MOSCOW, Sept 19 (Reuters) - The Russian rouble and otheremerging-market currencies slipped on Thursday after the U.S.Federal Reserve lowered interest rates but remained split on theneed for further cuts.

At 0715 GMT, the rouble was 0.1% weaker against the dollarat 64.23 and had lost 0.2% to trade at 70.89versus the euro.

The dollar found broad support on Thursday after the FederalReserve cut U.S. interest rates, as expected, but offered mixedsignals about future easing.

On Wednesday, Russia's finance ministry sold OFZ treasurybonds for 23.51 billion roubles ($366.10 million). Demand forthe bonds, a gauge of market sentiment toward Russian assets,was modest this week, analysts from Rosbank said.

"There are several risk factors for investors at thisstage," the analysts said in a note. "One can be spooked by thevolatility in commodity prices, the divided Fed or theuncertainty about the outcome of Brexit."

Prices for oil, Russia's main export, were flat on Thursdayafter days of turbulence. Markets were reassured by SaudiArabia's pledge to restore full production by the end ofSeptember.

Brent crude oil was at $63.61 a barrel.

The dollar-denominated RTS index was down 0.3% to1,378 points, while the rouble-based MOEX Russian indexwas 0.2% lower at 2,813 points.

For Russian equities guide see

For Russian treasury bonds see($1 = 64.2180 roubles)(Reporting by Anna Rzhevkina, editing by Larry King)

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