June 13, 2018 / 2:34 PM / 3 months ago

UPDATE 1-Russian rouble bounces back ahead off World Cup kick off

(Updates with rouble gain, adds quotes, detail)

MOSCOW, June 13 (Reuters) - Russia’s rouble bounced off six-week lows on Wednesday ahead of the World Cup, which some expect could have a temporary positive impact on the currency.

The Russian market could see up to $3 billion converted by foreigners during the soccer tournament, which should keep the rouble from weakening to 64-65 per dollar even if other emerging currencies fall, Artem Zvonarev, a trader at VTB Capital, said.

The rouble, which is usually largely driven by oil prices and risk sentiment, gained 0.3 percent to 62.65, after briefly hitting 63.24, a level last seen on May 8.

Sberbank CIB said in a note it expected export-focused companies to support the rouble by ramping up FX sales they have accrued during Russia’s holidays on June 11-12.

“We saw some weakening (in the rouble) in the morning as other emerging currency depreciated in the past few days. But then (the) offer of dollars appeared on the market,” Zvonarev added.

“Experience of previous World Cups suggests that host countries’ currencies tend to appreciate during the event but the magnitude of the movement is quite moderate,” Nordea Bank said in a research note.

The economic impact of the games, however, could be short-lived despite Moscow’s hopes that the billions of dollars spent on preparations will lead to a boost.

The rouble, which has dipped on expectations that major OPEC and non-OPEC oil producers could decide to increase output at a meeting this month, gained 0.3 percent to 73.80.

Brent crude, a global benchmark for Russia’s main export, was down 0.3 percent at $75.67 a barrel.

The rouble has been under pressure from increased finance ministry foreign currency purchases this month, when it plans to buy the equivalent of 19 billion roubles ($301 million) a day.

Russian stock indexes were steady. The dollar-denominated RTS index was unchanged at 1,141.96 points, while its rouble-based MOEX Russian index inched 0.03 percent higher to 2,272.3 points.

For Russian equities guide see

For Russian treasury bonds see ($1 = 63.1000 roubles) (Reporting by Andrey Ostroukh and Vladimir Abramov Editing by Alexander Smith)

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