Bloomberg News

Ruble Retreats Most in Week as Crude Oil Drops on Europe Jobless

July 02, 2012

The ruble depreciated the most in a week after oil, Russia’s chief export earner, fell as European unemployment climbed to a record.

The Russian currency depreciated 0.5 percent to 32.5997 per dollar by the close in Moscow, its steepest decline since June 22. The ruble weakened 9.2 percent in the second quarter.

Crude oil retreated 2.3 percent to $83.02 a barrel in New York. Oil and gas contribute about 50 percent of Russia’s state revenue. Euro-area unemployment reached the highest on record, with the jobless rate in the 17-nation euro area rising to 11.1 percent in May from 11 percent in April, data showed today. Russia’s Purchasing Managers’ Index slid to 51 from 53.2 in May, HSBC Holdings Plc said in a statement today, citing data compiled by London-based Markit Economics.

“Locals maintain a bearish view,” Vladimir Kolychev, chief economist at Societe Generale SA’s OAO Rosbank (ROSB) unit in Moscow, said by e-mail.

The Russian currency strengthened 0.4 percent to 40.9775 per euro and was little changed at 36.3697 against the central bank’s target dollar-euro basket. Investors increased bets on the currency weakening, with non-deliverable forwards showing the ruble at 33.1100 per dollar in three months, compared with expectations of 32.9915 per dollar on June 29.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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