Bloomberg News

Ruble Rebounds From 12-Week Low, Paring Fourth Yearly Decline

January 02, 2012

Dec. 30 (Bloomberg) -- The ruble appreciated for the first day in four, rising from its weakest level against the dollar in 12 weeks and trimming its fourth consecutive yearly drop, as oil headed for a third yearly increase.

The Russian currency strengthened 0.3 percent to 32.1475 against the dollar at end of trading in Moscow, rebounding from its weakest closing level since Oct. 6 and trimming the weekly drop to 2.9 percent. The ruble depreciated 0.4 percent to 41.7375 versus the euro, bringing the week’s drop to 2.6 percent.

Crude headed for a third annual increase amid speculation escalating tension in the Middle East may disrupt supplies. Oil for February delivery slipped 1 cent to $99.64 a barrel at 10:16 a.m. on the New York Mercantile Exchange. It has advanced 9 percent this year.

The ruble weakened in the final week of each year since 2008 as traders are closing their positions ahead of the country’s New Year and Christmas national holidays that run between Jan. 1 and Jan. 9. The ruble and stocks trading in Moscow resumes Jan. 3.

Russia’s dollar-denominated Eurobonds due in 2020 fell, pushing the yield four basis points, or 0.04 percentage points, higher to 4.562 percent.

--Editors: Linda Shen, Ash Kumar

-0- Dec/30/2011 16:04 GMT

To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@bloomberg.net

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


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