Bloomberg News

Ruble Falls to Dollar, Heads for 4th Week Loss on Growth Concern

May 25, 2012

The ruble headed for its fourth consecutive weekly loss against the dollar loss on signs of slowing growth in China and amid concern that Europe’s debt crisis may deepen.

The Russian currency lost 0.4 percent to 31.87 per dollar as of 1:27 p.m. in Moscow, extending its retreat this week to 1.9 percent. The ruble weakened 0.4 percent to 40.0825 per euro and declined 0.4 percent to 35.5601 against the central bank’s target dollar-euro basket.

China’s biggest lenders may miss loan targets for the first time in at least seven years, according to three bank officials with knowledge of the matter, a sign the country’s economic growth may decelerate further. Urals crude, Russia’s main export, traded little changed at $104.83 per barrel, seven cents off its lowest price this year.

“If the euro and the stock market continue to go down we could see the same in the ruble” next week, Kirill Egorov, head of foreign exchange at OAO AMB Bank in Moscow, said by e-mail. “Another problem is the situation with Greece.”

The euro lost 1.2 percent against the dollar this week, heading for a third week of declines. The MSCI Emerging Markets Index of equities dropped 0.6 percent.

Investors increased bets on the currency weakening, with non-deliverable forwards showing the ruble at 32.3643 per dollar in three months, compared with expectations of 31.755 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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