Bloomberg News

Ruble Slides After Best Week Gain Since 2009 as Europe Bets Ebb

October 17, 2011

Oct. 17 (Bloomberg) -- The ruble slid against the dollar after its best weekly advance since 2009 as hope for a swift end to Europe’s debt crisis ebbed, reducing investor appetite for riskier emerging-market assets.

The Russian currency dropped 0.1 percent to 30.9050 per dollar by the 7 p.m. close in Moscow, erasing an earlier advance of 0.9 percent. The ruble added 3.7 percent versus the greenback last week, its strongest gain since February 2009. It was 0.7 percent stronger at 42.57 per euro, leaving it up 0.3 percent at 36.1543 against the central bank’s target dollar-euro basket.

Emerging-market stocks and currencies pared gains after German Chancellor Angela Merkel’s chief spokesman said today an Oct. 23 deadline for a plan to ease the region’s problems won’t bring a swift resolution to the crisis.

“We haven’t really seen any tangible policy changes or sustained upward economic trend,” Peter Rosenstreich, chief currency analyst at Swissquote Bank SA in Geneva, said by e- mail.

Investors increased bets the Russian currency will weaken further, with non-deliverable forwards today showing it at 31.4274 per dollar in three months’ time, compared with 31.3638 per dollar Oct. 14.

Russia’s dollar bonds due 2020 climbed for a ninth day, pushing the yield down ten basis points, or 0.10 percentage point, to 4.68 percent. Dollar notes due 2015 yielded eight basis points less than on Oct. 14, at 3.322 percent.

--Editors: Alex Nicholson, Peter Branton

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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