(Adds detail, updates prices)<\/p>\n
MOSCOW, Sept 6 (Reuters) – The Russian rouble weakened past 73 to the dollar on Monday, heading away from the previous session\u2019s two-month peak in thin trade with U.S. markets closed for a public holiday, while shares in aluminium giant Rusal fell in jittery trade.<\/p>\n
The market weighed expectations of another increase in Russian interest rates and a decline in oil prices.<\/p>\n
At 1529 GMT the rouble was 0.4% weaker against the dollar at 73.04 after reaching its strongest since late June at 72.55 on Friday.<\/p>\n
Against the euro, the rouble eased 0.3% to 86.64.<\/p>\n
The rouble could gain support from Russia\u2019s central bank if it raises rates on Friday for the fifth time this year in an effort to rein in consumer inflation.<\/p>\n
A Reuters poll suggested the bank would raise by 50 basis points to 7%, but many analysts predicted a smaller 25-basis-point hike.<\/p>\n
Higher rates increase the appeal of rouble-denominated instruments, while expectations that the rate-raising cycle could be close to an end could lead to higher demand for Russian bonds.<\/p>\n
In the near-term, the target range for the rouble is 72.5 to 73.1 versus the dollar, Sberbank Asset Management said in a note.<\/p>\n
Russia\u2019s decision to trim foreign exchange purchases for state reserves in September could provide some support for the rouble, said Alor Broker analyst Alexey Antonov.<\/p>\n
Brent crude oil, a global benchmark for Russia\u2019s main export, was down 0.6% at $72.15 a barrel, extending losses after Saudi Arabia, the world\u2019s top oil exporter, cut crude contract prices for Asia over the weekend.<\/p>\n
The dollar-denominated RTS index was up 0.05% at 1,735.1 while the rouble-based MOEX Russian index gained 0.5% to 4,023.13 after hitting an all-time high of 4,026.03<\/p>\n
Rusal shares fell 2% following sharp gains after a coup in major bauxite supplier Guinea sent aluminium prices to their highest in more than 10 years.<\/p>\n
Rusal, which is the world\u2019s third-largest aluminium producer, said it aimed to keep its three major bauxite mines and one alumina refinery in Guinea operating after the military coup. Guinea\u2019s bauxite industry – with its mines – accounts for 42% of Rusal\u2019s total bauxite capacity.<\/p>\n