Bloomberg News

Ruble Slides to Steepest Week Drop This Year After Crude Falls

May 05, 2012

The ruble weakened for a third day against the dollar and yields on Russia’s local bonds rose after a report showing slower-than-expected U.S. jobs growth triggered crude oil’s biggest drop in almost five months.

The Russian currency lost 0.2 percent to 29.80 per dollar by the close in Moscow, taking its weekly decline to 1.3 percent, the biggest this year. The country’s 28 billion rubles ($940 million) of local bonds due 2027 fell for a second day, increasing the yield four basis points, or 0.04 percentage point, to 8.31 percent.

Crude futures slumped 4 percent to $98.49 per barrel by yesterday’s close in New York, the biggest decline since Dec. 14. Labor Department figures showed payrolls climbed 115,000 in April, the smallest gain in six months. Oil and gas together contribute about 17 percent of Russia’s gross domestic product and 50 percent of state revenue, according to the government’s estimates.

Russia’s markets were open today to replace a public holiday on May 7.

The ruble was little changed at 39 per euro and 33.94 against the central bank’s target dollar-euro basket. The overnight MosPrime rate banks say they charge to lend to one another in the Russian currency slipped 41 basis points to 5.57 percent, the biggest decline since April 5.

To contact the reporter on this story: Jack Jordan in Moscow at

To contact the editor responsible for this story: Gavin Serkin at

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