Bloomberg News

Ruble Drops to Three-Month Low Versus Dollar After Oil Decline

May 10, 2012

The ruble weakened to its lowest close against the dollar in almost three months after oil, Russia’s chief export earner, declined.

The ruble weakened 1 percent to 30.11 per dollar by the close in Moscow, its worst since Feb. 16. Russia’s $3.5 billion of Eurobonds due 2020 rose for the first time in three days, lowering the yield five basis points, or 0.05 percentage point, to 3.881 percent.

Crude futures traded at $97.11 per barrel in New York, $1.38 less than when the ruble last traded through the Moscow- based Micex-RTS Exchange on May 5. Russia was closed for public holidays from May 7 to May 9. Greece may have to hold another election as early as next month as coalition talks remain deadlocked, signaling the country may risk exiting the euro. The European Union is Russia’s largest trading partner.

Russia’s central bank refrained from cutting interest rates for a fifth month, leaving the refinancing rate at 8 percent, according to a statement on its website today. The overnight auction-based repurchase rate was held at 5.25 percent and the overnight deposit rate will remain at 4 percent.

The ruble weakened 0.1 percent to 39.035 per euro and 0.6 percent to 34.1263 against the central bank’s target dollar-euro basket. Investors increased bets on the currency weakening, with non-deliverable forwards showing the ruble at 30.5303 per dollar in three months, compared with expectations of 30.6097 per dollar yesterday.

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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