MOSCOW, Dec 2 (Reuters): The Russian rouble gave up early gains on Tuesday after the Economy Ministry said it expects a recession next year and sees the currency remaining weak.
At 1015 GMT, the rouble was down 1.7 per cent against the dollar at 52.08, after rising as much as 1 per cent on the day earlier in the session. It was trading 1.3 per cent weaker against the euro at 64.76.
Crude gave up some of its gains from late Monday but remained above the multi-year lows reached earlier. That lifted the rouble in early trade after it suffered its biggest intraday losses in 16 years in the previous session.
But the Economy Ministry said that lower oil prices and sanctions imposed on Moscow over its role in the Ukraine conflict will cause gross domestic product to contract by 0.8 per cent next year, a significant change from an earlier forecast of 1.2 per cent growth.
The ministry also cut its forecast for 2015's average oil prices by $20 to $80 and said it expected an average rouble rate of 49 to the dollar.
"The revision of the economic outlook had been expected, but for some it still could have been an unpleasant surprise that had forced foreign currency purchases or closure of short positions," said a dealer at a major Russian bank.
The rouble closed its previous session down 1.6 per cent, probably supported by interventions from the central bank, traders said. But earlier in the session on Monday, it had traded as much as 7 per cent lower against the dollar.
Russian rouble gives up gains on forecast of recession
FE Team | Published: December 03, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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