Russian rouble falls to 2-week low, Rusal shares leap on merger talk

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05/07/2022 09:02

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    MOSCOW, July 5 (Reuters) - The rouble fell against the
dollar to the lowest in two weeks on Tuesday, while shares in
aluminium producer Rusal leapt as Russian businessman Vladimir
Potanin hinted at a possible merger with mining giant Nornickel.
    At 0759 GMT, the rouble was 2.6% weaker against the dollar
at 56.68  RUBUTSTN=MCX , its weakest point since June 20. The
unit had lost 1.4% to trade at 58.58 versus the euro
 EURRUBTN=MCX .    
    The rouble's recent slump from more than seven-year highs
hit last Wednesday is just a correction on the market, said Alor
Broker in a note.
    "It is too early to talk about a break in the rouble's
strengthening trend," Alor Broker analysts wrote. "Russia's
balance of payments will continue to remain very strong,
importers will not recover their positions quickly. 
    "Only by introducing a new budget rule can the situation on
Moscow Exchange's currency market change radically." 
    The rouble is still the world's best-performing currency https://emea1.apps.cp.thomsonreuters.com/Apps/NewsServices/mediaProxy?apiKey=6d416f26-7b24-4f31-beb6-1b5aa0f3fafb&url=http%3A%2F%2Ffingfx.thomsonreuters.com%2Fgfx%2Frngs%2FGLOBAL-CURRENCIES-PERFORMANCE%2F0100301V041%2Findex.html
 this year, boosted by measures - including restrictions on
Russian households withdrawing foreign currency savings - taken
to shield Russia's financial system from Western sanctions
imposed after Moscow sent troops into Ukraine on Feb. 24 in what
it calls a "special military operation".
    Proceeds from commodity exports and a sharp drop in imports
are further factors behind the currency's gains. But the rouble
has now lost the support of last week's tax-driven dollar and
euro sales.
    Expectations of the imminent launch of currency
interventions, which Finance Minister Anton Siluanov said Russia
could turn to as it tries keep a lid on the rouble's
strengthening, may continue to pull support from the rouble on
Tuesday, said Promsvyazbank analysts. 
    Potanin, the largest shareholder at Nornickel  GMKN.MM , is
ready to discuss a possible merger of the mining giant with
Rusal  0486.HK  amid Western sanctions, he said in an interview
with RBC TV.  urn:newsml:reuters.com:*:nL1N2YM0B9
    Rusal's Moscow-listed shares  RUAL.MM  leapt more than 20%
before settling around 10% higher. Shares in En+  ENPG.MM ,
Rusal's majority shareholder, were 10.5% higher in Moscow.
Nornickel shares fell 2.1%. 
    Russian stock indexes were lower.
    The dollar-denominated RTS index  .IRTS  was down 2% to
1,224.0 points. The rouble-based MOEX Russian index  .IMOEX  was
0.1% lower at 2,202.0 points.


 (Reporting by Reuters)