Bloomberg News

Ruble Weakens Against Dollar on U.S. Data; Bond Yields Rise

February 28, 2012

The ruble weakened for the first day in four against the dollar and the yield on the government’s ruble-denominated Eurobond rose to a three-week high as worse- than-expected U.S. data hurt demand for riskier assets.

The Russian currency slid as much as 0.3 percent and traded little changed at 29.044 at the 7 p.m. close in Moscow. The yield on the ruble Eurobond, due in 2018, rose two basis points to 6.997 percent, the highest since Feb. 2.

Durable goods orders in the U.S., the world’s largest economy, dropped the most in three years in January, according to data from the Commerce Department today. Brent crude lost 0.4 percent to $123.62 per barrel.

Russia’s Eurobonds due 2015 rose for a third day, pushing the yield down 12 basis points to 2.305 percent. Dollar bonds due the same year issued by OAO Sberbank, Russia’s largest lender, yielded 12 basis points less than yesterday at 3.796 percent, while the yield on similar-maturity debt from state gas monopoly OAO Gazprom lost 18 basis points to 3.673 percent.

The ruble fell 0.4 percent to 39.015 per euro and 0.2 percent to 33.5309 against the central bank’s target dollar-euro basket. Investors increased bets the currency will weaken, with non-deliverable forwards showing the ruble at 29.4335 per dollar in three months, compared with expectations of 29.375 per dollar yesterday.

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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