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UPDATE 1-Russian rouble falls to over 2-week low past 61 vs dollar

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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 Capital comment)

By Alexander Marrow

MOSCOW, Oct 7 (Reuters) - The rouble slumped to its lowest in more than two weeks near 62 against the dollar on Friday, extending weekly losses as fears subsided that new sanctions against Russia might halt foreign exchange trading in Moscow.

Geopolitics and sanctions risks have buffeted Russian markets in recent weeks since President Vladimir Putin moved to annex four regions of Ukraine after Moscow held what it called referendums - votes that were denounced by Kyiv and Western governments as illegal and coercive.

By 1141 GMT, the rouble was 0.4% weaker against the dollar at 61.14, earlier sliding to its weakest point since Sept 21 of 61.70.

It had lost 2.5% to trade at 60.56 versus the euro , also a more than two-week low, and shed 0.2% against the yuan to 8.58.

"The yuan was more attractive than the dollar for the fourth day running," said Promsvyazbank analysts. "Thus, liquidity of the Chinese currency remains higher than dollar and euro liquidity, which we link to the toxicity of Western currencies."

After soaring to a near eight-year high against the euro a week ago, the rouble has weakened in the past few sessions as concerns that new sanctions would seek to paralyse dollar and euro trading on Moscow Exchange proved unfounded.

The European Union's eighth sanctions package targeted steel and tech products, as well as an oil price cap for some Russian crude deliveries, another factor putting pressure on Russian markets.

"As far as the local currency market is concerned, the situation here does not only depend on oil prices, and subsequently the volume of export revenues, but also on the new budget rule," said Alfa Capital analyst Vladimir Bragin.

Finance Minister Anton Siluanov last month reiterated his preference for a weaker rouble, as he announced a new cut-off price for Russia's budget rule that diverts excess oil revenues into its wealth fund of $62-63 per barrel.

Brent crude oil, a global benchmark for Russia's main export, was up 1.1% at $95.4 a barrel.

Russian stock indexes were falling.

The dollar-denominated RTS index was down 2% to 1,024.3 points, its weakest point since Sept. 26. The rouble-based MOEX Russian index was 1.6% lower at 1,989.1 points.

European clearing giant Clearstream on Friday resumed the processing of some depository receipt conversions into Moscow-listed shares. Depository receipts allow investors to trade in overseas stocks, but Russian investors have faced difficulty in converting them due to EU sanctions. (Reporting by Alexander Marrow Editing by Mark Potter, Kirsten Donovan)

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