Bloomberg News

Ruble Weakens Third Day Against Dollar on Euro Crisis Concern

November 17, 2011

Nov. 16 (Bloomberg) -- The ruble dropped for a third day against the dollar on concern Europe’s debt crisis will hurt demand for Russia’s exports.

The Russian currency lost 0.4 percent to 30.745 per dollar at the 7 p.m. close in Moscow, the weakest closing level since Nov. 1. The ruble was unchanged at 41.5275 per euro, leaving it down 0.2 percent at 35.5971 against the central bank’s target dollar-euro basket.

Italy’s 10-year bond yield closed yesterday for the second time in a week above the 7-percent threshold that prompted Greece, Ireland and Portugal to seek European Union bailouts. The EU is Russia’s largest trading partner.

The Italian notes yielded 7.068 at yesterday’s close, according to data compiled by Bloomberg, compared with an 8.46 percent yield on similar-maturity Russian debt. Russia’s finance ministry sold 10-year ruble bonds today at a yield of 8.45 percent, according to a statement on its website.

Russia’s $3.5 billion of Eurobonds due 2020 rose, pushing the yield down six basis points, or 0.06 percentage point, to 4.428 percent. Investors increased bets the ruble would weaken further, with non-deliverable forwards showing it at 31.2033 per dollar in three months, compared with 31.1228 per dollar yesterday.

--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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