June 7 (Reuters) - The Russian rouble steadied on Wednesday ahead of three government bond auctions, taking stock of increasing geopolitical risks after a dam breach in Ukraine and supported by exporters' foreign currency conversion for dividend payments.
At 0730 GMT, the rouble was 0.1% weaker against the dollar at 81.51 and had gained 0.1% to trade at 87.07 versus the euro. It was unchanged against the yuan at 11.41.
Geopolitical concerns are among the factors likely to dictate fluctuations in the USD/RUB currency pair in June, Rosbank analysts said in a report. Foreign currency conversion by exporters to pay taxes and dividends will be a support factor.
"As a result, opportunities for the rouble's tactical strengthening from current levels remain," Rosbank said.
The rouble could gain support from increased daily FX sales by the finance ministry. The ministry is also set to hold three OFZ treasury bond auctions on Wednesday.
Geopolitical risks have become more acute in recent weeks, with drone attacks and ground incursions on Russian territory. Russia blames Ukraine for such incidents, but Kyiv denies sending troops across the border.
Tuesday's breach of a huge dam on the front-line Dnipro river has muddied the picture for a much-awaited Ukrainian counteroffensive against Russian occupying forces and threatens an environmental disaster for civilians living in the war zone.
Brent crude oil, a global benchmark for Russia's main export, was down 0.8% at $75.71 a barrel.
Russian stock indexes were mixed, but above the around two-week lows hit during the previous session.
The dollar-denominated RTS index was down 0.1% to 1,036.8 points. The rouble-based MOEX Russian index was 0.1% higher at 2,682.8 points.
Shares in state-owned lender VTB were 0.5% higher after the bank said it expected to raise 94 billion roubles in its secondary public offering (SPO).
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For Russian treasury bonds see (Reporting by Alexander Marrow. Editing by Gerry Doyle)
