MOSCOW, Oct 7 (Reuters) – The Russian rouble firmed ahead of treasury bond auctions on Wednesday along with other emerging market currencies, but its gains were capped by falling oil prices and geopolitical risks.
Political unrest in Kyrgyzstan, where rival opposition factions made grabs for power on Wednesday, added to turmoil in neighbouring Belarus, a military conflict in the South Caucasus and the suspected poisoning of Kremlin critic Alexei Navalny in exerting pressure on the currency.
At 0746 GMT, the rouble was 0.4% stronger against the dollar at 78.15 RUBUTSTN=MCX and had gained 0.2% to trade at 91.88 versus the euro EURRUBTN=MCX. Rising coronavirus cases globally and at home also weighed.
Brent crude oil LCOc1, a global benchmark for Russia’s main export, was down 1.2% at $42.12 a barrel.
Rouble sales would be facilitated by the situation on energy markets, said Bogdan Zvarich, chief analyst at Promsvyazbank. However,