Bloomberg News

Ruble Falls Second Day Versus Dollar on Global Slowdown Woes

July 05, 2012

The ruble weakened for a second day as European Central Bank President Mario Draghi said downside risks to the economy remained, outweighing monetary easing from China and the U.K.

The Russian currency depreciated 0.5 percent to 32.5300 per dollar by the close in Moscow. The ruble strengthened against the euro, adding 0.6 percent to 40.3048, and was little changed at 36.0287 against the central bank’s target dollar-euro basket.

Draghi said “heightened uncertainty” was weighing on confidence, pushing the ECB to cut interest rates to a record low. The Bank of England restarted bond purchases two months after halting its expansion of stimulus, and China cut benchmark interest rates for the second time in a month.

Investors increased bets on the currency weakening, with non-deliverable forwards showing the ruble at 33.0545 per dollar in three months, compared with investor expectations of 32.8390 per dollar yesterday.

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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