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This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine
(Updates prices, adds Alfa Bank comment, Meta trading)
By Alexander Marrow
MOSCOW, Oct 12 (Reuters) – The Russian rouble fell to a more than three-month low near 65 to the dollar in early trade on Wednesday before paring losses in volatile trade, under pressure from geopolitical tensions linked to the conflict in Ukraine and lower oil prices.
By 1147 GMT, the rouble was 0.2% weaker against the dollar at 63.80, earlier hitting its weakest point since July 6 of 64.9275 and at one point firming to as strong as 63.0075 in a topsy-turvy session.
It had lost 0.2% to trade at 63.61 against the euro , sliding past the 64-mark for the first time in three months in early trade, and gained 0.6% against the yuan to 8.63.
"Geopolitical tensions between Russia and the West continue to escalate and are likely to weigh on risk appetite, with NATO reiterating its support for Ukraine yesterday and the U.S. pledging further military assistance," said Alfa Bank Equity Strategist John Walsh.
The rouble is still the world's best-performing currency this year, supported by the central bank's capital controls and a collapse in imports as Western governments unloaded hefty sanctions on Russia, while scores of foreign companies paused operations in the country.
Russia ran a current account surplus of $198.4 billion in the first nine months of 2022, central bank data showed on Tuesday. The third-quarter surplus dropped to $51.9 billion, from $76.7 billion in the second.
"Russia's exceptional current account surplus is past its peak," Elina Ribakova, the Institute of International Finance's (IIF) deputy chief economist, wrote on Twitter. "3Q2022 is down to $51bn, still high, but the tide is turning."
Otkritie Research analysts said the change was not enough to force the rouble to fall substantially against the dollar just yet, maintaining its year-end forecast of 64 to the U.S. currency.
Brent crude oil, a global benchmark for Russia's main export, was up 0.4% at $94.6 a barrel, but had traded near $99 two sessions ago.
Russian stock indexes, which sunk to multi-month lows on Monday, were rising.
"Trading on the Russian market remains chaotic and multidirectional," said Yaroslav Kabakov, strategy director at Finam brokerage.
The dollar-denominated RTS index was up 0.9% to 973.48 points. The rouble-based MOEX Russian index was 1.3% higher at 1,974.1 points.
Moscow Exchange, Russia's largest bourse, said it had excluded trading of Meta Platforms Inc. securities after the U.S. company was added to financial monitoring agency Rosfinmonitoring's list of "terrorists and extremists". (Reporting by Alexander Marrow; Editing by Alex Richardson and Tomasz Janowski)
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