Russian rouble weakens after Moscow suspends Black Sea grain deal
Oct 31 (Reuters) - The Russian rouble weakened as trading opened on Monday in the first session since Moscow said it would suspend participation in the landmark Black Sea grain deal over the weekend.
Global food prices climbed on Monday after Russia said it was suspending participation in the U.N. grain deal for an "indefinite term" after what it said was a major Ukrainian drone attack on its Black Sea fleet in Crimea.
At 1020 GMT the rouble had fallen by 0.6% against the U.S. dollar to 61.85 and lost 0.3% to 61.24 versus the euro.
Against the Chinese yuan, the rouble was off 0.3% at 8.43 .
The grain corridor deal, which helped to unlock Ukrainian exports from its southern ports, was the most significant diplomatic breakthrough so far in the eight-month conflict.
Kyiv and the West criticised Russia's decision to ditch the agreement and analysts warned it could cause another spike in global food prices.
Also weighing on the rouble was a 1.2% decline in the price of Brent crude oil, a global benchmark for Russia's main export, to $94.65 a barrel.
Monday represented the final day of a domestic month-end tax period, which usually provides some support to the rouble. Monday is also the first full session after the central bank ended its rate-cutting cycle on Friday and said that Moscow's "partial mobilisation" drive would be inflationary over the medium-term.
"The end of the tax period and large dividend payments, coupled with a further decline in Russia's trade balance, is likely to send the rouble in the direction of 65 (against the U.S. dollar) by the end of the year," wrote Dmitry Polevoy, investment director at Moscow-based broker Locko Invest.
Russian stock indexes were mixed on the currency effect.
The dollar-denominated RTS index was down 0.5% at 1,107.5 points while the rouble-based MOEX Russian index was 0.3% up at 2,173.5 points.
For Russian equities guide see
For Russian treasury bonds see (Reporting by Jake Cordell Editing by David Goodman )
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