July 16, 2018 / 4:45 PM / 3 months ago

UPDATE 1-Putin-Trump meeting supports rouble despite drop in oil prices

(Adds detail, quotes, updates prices)

MOSCOW, July 16 (Reuters) - The rouble held gains on Monday after a first summit between Russian President Vladimir Putin and U.S. President Donald Trump helped offset a negative impact from a rapid drop in oil prices.

The rouble traded at 62.29 versus the dollar as of 1618 GMT, up 0.4 percent of the day, and was 0.2 percent stronger at 72.93 against the euro.

Putin and Trump met in Finland’s capital Helsinki a few days after the indictment of 12 Russian military intelligence officers on charges of hacking into 2016 U.S. presidential campaign.

Trump said on Monday he saw no reason to believe Russia had hacked the 2016 U.S. presidential election to help him win, and Putin “was extremely strong and powerful in his denial today”.

Hours before he was due to sit down at the summit with Putin, Trump blamed “U.S. foolishness” for bad relations between Washington and Moscow, while the Kremlin said it expected a tough meeting.

Analysts said the talks gave the market a positive signal but were not enough to kick start a rally.

“The beginning of the dialogue and presidents’ gratitude for a successful meeting create a positive backdrop,” said Vladimir Tikhomirov, chief economist at BCS brokerage.

Investors may need some time do assess the outcome of the meeting, Uralsib’s economist Olga Sterina said.

“The wording used was rather vague but, in general, it was hard to expect some breakthroughs from today’s meeting,” she said.

The summit, however, has offset a negative impact of a drop in prices for oil, Russia’s key exports. Brent crude futures were 3.4 percent lower at $71.95, having slid from Monday’s peak of $75.37.

The dollar-denominated RTS index finished the day 0.7 percent lower at 1,180.6 points, while the rouble-based MOEX Russian index was 0.5 percent lower at 2,334.2 points.

For Russian equities guide see

For Russian treasury bonds see (Reporting by Andrey Ostroukh and Elena Fabrichnaya Editing by Alison Williams)

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