Bloomberg News

Ruble Falls First Time in Three Days Against Basket as Oil Drops

March 27, 2012

The ruble weakened against the central bank’s target dollar-euro basket for the first time in three sessions and Russia’s local-currency bonds fell as oil, the country’s chief export earner, declined in New York.

The Russian currency depreciated 0.2 percent to 33.3765 against the basket at the close in Moscow, paring yesterday’s 1 percent advance. The yield on Russia’s 114 billion rubles ($3.9 billion) of domestic OFZ bonds due 2021 rose two basis points, or 0.02 percentage point, to 7.84 percent.

Crude futures dropped 0.4 percent to $106.59 per barrel in New York on reports the U.S. is considering a release from its Strategic Petroleum Reserve. Oil and gas together provide about 17 percent of Russia’s gross domestic product and 50 percent of state revenue, according to government estimates.

The ruble was 0.2 percent weaker at 38.6948 per euro and little changed at 29.0252 per dollar. Investors increased bets on the currency weakening, with non-deliverable forwards showing it at 29.399 per dollar in three months, compared with expectations of 29.368 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


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus