Russian rouble down after blasts in Moscow

The Russian rouble came under pressure early on Monday after two bomb explosions on the Moscow metro system sparked a wave of risk aversion, hiking demand for perceived safer assets such as dollars.

By 0722 GMT, the rouble was 7 kopecks down at 34.20 versus the euro-dollar basket after falling to its lowest level since March 10 of 34.43 at the market opening, according to Reuters data.

"Blasts are the new theme, it will seriously affect the market," said Roman Pakhomenko, dealer at Lanta Bank.

Russian stock markets were unfazed, however, edging up in early trade.

The rouble-dominated MICEX exchange was up 0.12 percent, while the dollar equivalent RTS climbed 0.33 percent.

The blasts during rush hour on two packed Moscow metro trains killed at least 37 people and wounded 33, Russian officials said.

Dealers said the dollar and the euro had been broadly oversold against the rouble, which has been rallying for weeks.

"It is a psychological moment. The sentiment is very bad, a lot of uncertainty. The market was overshort (in foreign currencies) so the reaction is explainable," said a dealer at a major Russian bank in Moscow.

Non-residents may also start to withdraw funds from the rouble later in the day, dealers said, but the external background remained generally positive, with oil prices still around $80 per barrel, ensuring new capital inflows into Russia

Against the dollar, the rouble lost 17 kopecks, falling to as low as 29.8, and was 14 kopecks down versus the euro at 39.87 .