Bloomberg News

Ruble Drops From 3-Month High as U.S. Outlook Pares Risk Wagers

February 01, 2012

Feb. 1 (Bloomberg) -- The ruble slipped from its strongest level in three months after a report showed U.S. consumer confidence fell, curbing demand for riskier assets.

The Russian currency depreciated 0.2 percent to 30.225 per dollar at the 7 p.m. close in Moscow, after gaining 6.5 percent last month. It was 0.4 percent weaker at 39.8025 per euro and lost 0.3 percent to 34.5349 against the central bank’s target dollar-euro basket.

The New York-based Conference Board’s confidence index decreased to 61.1 yesterday, lower than the most pessimistic forecast in a Bloomberg News survey of economists, from a revised 64.8 the prior month. The ruble’s strongest start to the year since at least 2004 against the dollar may be threatened after protests against the government this weekend remind investors of political risks, according to Societe Generale SA’s Russian unit.

Investors pared bets the Russian currency would weaken, with non-deliverable forwards showing the ruble at 30.5611 per dollar in three months. Russia’s $3.5 billion of bonds due 2020 rose for the first day in four, pushing the yield down 12 basis points, or 0.12 percentage point, to 4.243 percent.

--Editors: Alex Nicholson, Linda Shen

-0- Feb/01/2012 07:00 GMT

-0- Feb/01/2012 07:34 GMT

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 -0- Feb/01/2012 06:28 GMT


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