MOSCOW Reuters - The rouble fell past 61 to the dollar on Monday as Russian companies began to convert their depository receipts to local shares and foreign investors from designated friendly countries were able to return to the bond market.
The rouble was 1% weaker against the dollar at 61.25 at the time of 0757 GMT, remaining in a narrow range between 59.45 and 61.45 for the tenth trading session in a row.
It fell by 0.4% to 62.57 against the euro.
After wild swings on the Moscow Exchange in March, Rouble volatility has declined, as Russia sent tens of thousands of troops into Ukraine on February 24, and then rally to a seven-year peak of 50.01 in June.
The rouble is expected to get support from month-end tax payments that usually prompt export-focused companies to convert part of their foreign currency revenues.
The dollar-denominated RTS index fell 0.8% to 1,107 on stock markets. The Russian MOEX index was higher by 0.1%, at 2,149, while the rouble-based MOEX was 1 points. 9 points.
Market moves were relatively muted despite analysts predicting an increase in selling pressure as Russia starts to convert global receipts GDRs into shares.
The GDRs of Russian companies that were traded on foreign exchanges and held in Russian depositories will be converted into shares on the Moscow Exchange from August 15 in an effort to reduce foreign control over such companies due to Western sanctions.
Depositary receipts start to be converted to equities today, which could make it hard for the stock market to rise, according to analysts. Promsvyazbank analysts said, forecasting a decline in the MOEX index to below 2,100 points.
From Monday, the Moscow Exchange will allow non-residents from designated friendly countries that have not imposed sanctions against Russia to trade bonds.
Yields on benchmark 10 year OFZ treasury bonds were steady near Friday's close of 9.18%.