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MOSCOW, Sept 30 (Reuters) – The Russian rouble firmed on Wednesday ahead of government bond auctions but remained near recent lows under pressure from mounting risk aversion.
Russian assets have come under selling pressure this week from fears the country would be dragged into the military conflict in the South Caucasus.
“An important point is that the recent rouble weakness is not a response to a deterioration in fundamentals but a reflection of growing geopolitical risk,” Alfa Bank said.
At 0905 GMT, the rouble was 0.9% stronger against the dollar at 78.37 RUBUTSTN=MCX, heading away from its weakest point since late March of 79.9750 it hit on Tuesday.
Rising coronavirus cases at home also weighed despite Russia saying it has completed clinical trials of a second potential vaccine against COVID-19.
The rouble is seen floating within a range of 78-79 against the dollar