By Andrey Ostroukh and Vladimir Abramov
MOSCOW, July 30 (Reuters) - The Russian rouble ended down on the week, losing support from domestic month-end taxes and undermined by lingering demand for relatively cheap dollars and euros, with dealers anticipating further losses.
Against the euro-dollar basket, used by the central bank to track exchange rates, the rouble slid 12 kopecks, or 0.34 percent to 34.42, according to Reuters data.
Versus the broadly stronger euro, it inched down 35 kopecks, or 0.89 percent in five trading days to 39.44.
However the rouble rose 9 kopecks, or 0.28 percent to finish the week at 30.29 against the dollar, 14 kopecks away from an 11-week peak hit on July 29.
The rouble was generally supported by oil prices, its main benchmark, that stood above $75 per barrel, underpinning inflows into Russia's export-focused economy.
The rouble also enjoyed support from Russian exporters that had been converting their dollar and euro revenues to meet local month- and quarter-end liabilities.
But as the tax period came to an end, the rouble came under pressure from risk aversion and lingering demand for dollars and euros, given their relatively cheap nominal exchange rates, dealers said.
On Friday alone, the rouble lost 7 kopecks versus the basket and the dollar and gained 3 kopecks against the euro.
'People were closing short positions (in foreign currencies) today. The market looks dull now,' said Sergei Shepilov, chief dealer at Raiffeisen bank in Moscow.
The central bank's decision to hold interest rates unchanged on Friday did not have any evident influence on the rouble as such move was widely expected and had been already priced in, dealers said.
MORE LOSSES AHEAD?
Dealers say Russia's currency may show further losses in the coming days with investors wary of betting on a stronger rouble at the start of Augest, a month noted for shock events, include Russia's sovereign default in 1998 and war with Georgia in 2008.
The first few weeks of August may bring higher clients' demand for foreign currencies, said Shepilov at Raiffeisen.
'I see a higher basket (lower rouble) as tax period is over, inflows of foreign currencies are modest, while the external backdrop is rather negative,' said Artyom Gavrilov, chief dealer at Nomos bank.
The latest Reuters poll of 17 analysts, showed expectations on the rouble are turning to more bearish. The median forecast for the rouble rate versus the basket by the year-end is 33.81, some 2.5 percent weaker than May's consensus forecast.
(Editing by Dmitry Sergeyev, Ron Askew) Keywords: RUSSIA ROUBLE/
(andrey.ostroukh@reuters.com, +7 495 775 12 42)
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