Bloomberg News

Ruble Weakens Most in Month Versus Dollar as Crude Oil Tumbles

June 23, 2011

June 23 (Bloomberg) -- The ruble weakened the most versus the dollar in a month after the International Energy Agency announced it will release 60 million barrels of oil from emergency stockpiles, driving down the price of Russia’s chief export earner.

The ruble depreciated 0.9 percent to 28.24 per dollar at the 5 p.m. close in Moscow, the sharpest drop since May 23. The ruble was 0.7 percent stronger at 39.9875 per euro, leaving it little changed at 33.5264 versus the central bank’s target dollar-euro basket.

“The ruble weakened towards the end of the session as oil headed sharply lower,” Denis Korshilov, the Moscow-based head of fixed income, currencies and commodities in Russia at Citigroup Inc., wrote in response to e-mailed questions.

The IEA said the oil would be released from around the end of next week, only the third time the organization has coordinated the use of emergency stockpiles since the agency was founded in 1974. Crude for August delivery dropped as much as $4.85 to $90.56 a barrel before the ruble’s close.

--Editors: Alex Nicholson, Linda Shen

To contact the reporter on this story: Jack Jordan in Moscow at jjordan22@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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