The ruble depreciated the most in a week against the dollar and yields on Russia’s bonds rose as oil, the country’s main export, declined.
The Russian currency lost 1.6 percent to 32.7715 per dollar by the 7 p.m. close in Moscow, the sharpest daily slide since May 31. Russia’s $2 billion of bonds due 2022 fell, increasing the yield by four basis points, or 0.04 percentage point, to 4.096 percent.
Brent crude sank 2 percent to $97.92 per barrel after Federal Reserve Chairman Ben S. Bernanke said yesterday that the U.S. needs to assess the risk from Europe’s debt crisis before deciding on stimulus measures. West Texas Intermediate crude is poised for the longest weekly losing streak in more than 13 years.
“Brent is down to $98 per barrel, and overall global market sentiment got worse today,” Alexander Morozov, chief economist for Russia and the Commonwealth of Independent States at HSBC Holdings Plc in Moscow, said by e-mail. “For the ruble, oil prices still matter a lot. Besides, the ruble’s recent gains were too strong to be sustained.”
The ruble declined 0.4 percent to 40.7125 per euro and lost 0.8 percent to 36.2864 against the central bank’s target dollar- euro basket. Investors increased bets on the currency weakening, with non-deliverable forwards showing the ruble at 33.1585 per dollar in three months, compared with expectations of 32.7655 per dollar yesterday.
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