RTRS:Russia rouble at 9-month low vs dollar, basket
* Rouble falls as dollar gains ahead of Fed meeting
* Eyes on August macro report
* Stocks down on persisting EU woes
By Nastassia Astrasheuskaya
MOSCOW, Sept 19 (Reuters) - The rouble dropped to a
nine-month low versus the strengthening dollar on Monday,
tracking weaker oil prices, and stocks also fell as markets
waited for a clutch of data to give a picture of Russia's
economic health.
By 0745, the rouble had lost 1.03 percent against the
dollar to 30.86 , its lowest level since Dec. 13,
2010, as the greenback drew support from speculation the U.S.
Federal Reserve may ease policy this week at a two-day meeting
on Tuesday and Wednesday.
Against the euro-dollar basket , the rouble
weakened 0.6 percent to 36.00, the lowest since December,
trading in the range where the central bank may intervene
selling foreign currency.
The rouble's fall was consistent with a drop in oil prices.
Brent crude futures lost 0.86 percent to $111 per barrel.
"Sentiment towards Russia this week will, in particular, be
more influenced by the trend in the oil price and that may lead
to some further weakness relative to global emerging markets
over the short-term," Chris Weafer, analysts at Troika Dialog
said in a note.
The rouble may gain some support from the exporters'
currency conversions ahead of monthly tax payments, with the
value-added tax due on Tuesday expected to total 100-150 billion
roubles($3.3-$4.9 billion), according to VTB Capital estimates.
Russian markets are also awaiting August data on
unemployment, retail sales, wages and capital investment. These
are expected later in the day and will provide a snapshot of
Russia's economic health.
Last week's August industry output and producer price index
(PPI)data exceeded analysts' expectations, although did not
outweigh the overall negative mood as investors worry about the
crisis in the euro zone.
Russian stocks traded in the red, with the dollar-based RTS
index down 1.65 percent and the more liquid
rouble-traded MICEX index losing 0.8 percent by 0726 GMT.
"If the data points to a strengthening recovery, as last
week's industrial production update does, then we will get a
stronger fourth-quarter rally, if global markets also
appreciate," Weafer said.
The Russian exchanges did not fare as badly as the broader
MSCIEF emerging markets index, which dropped 1.86 percent
.
Russia's top gold producer Polyus Gold (POLGq.L: Quote) ,
and the E.ON-controlled (EONGn.DE: Quote) power firm OGK-4
are expected to post financial results for the first half of the
year later in the afternoon.
Polyus Gold traded flat in London, gaining 0.17 percent in
the Russian exchange, while OGK-4 was down 2.24 percent.
Russia's 30-year Eurobond yield rose to 4.24 percent from
4.1 percent last week , while the spread on the
country's dollar bonds over comparable U.S. securities widened
to 266 basis points, adding more than 35 points in three weeks
.
Further bond market behaviour will be determined by the
outcome of the U.S. Federal Reserve meeting, analysts at VTB
Capital said in a note.
"Until the meeting is concluded, risk sentiment and
liquidity in Russian/CIS bonds will remain poor. In the event of
a market positive action on the part of the Fed, we would expect
some rebound in Russian bonds as the fundamental valuations look
fairly appealing," they said.
