The ruble weakened for the first time in six days against the dollar and yields on Russia’s local debt rose as oil, the country’s main export, retreated.
The ruble lost 0.2 percent to 32.0399 per dollar by the close in Moscow, paring its advance this week to 1.8 percent. Russia’s 54 billion rubles ($1.7 billion) of domestic bonds due 2027 fell, increasing the yield by six basis points, or 0.06 percentage point, to 8.36 percent.
Brent crude sank 1.2 percent to $106.52 per barrel after U.S. reports yesterday showed home sales unexpectedly dropped in June and manufacturing in the Philadelphia region contracted a third month in July. Oil and gas together contribute about 50 percent of Russia’s state revenue, according to the government’s estimates.
The ruble gained 0.6 percent to 38.9875 per euro and 0.2 percent to 35.1663 against the central bank’s target dollar-euro basket. Investors increased bets on the currency weakening, with non-deliverable forwards showing the ruble at 32.5347 per dollar in three months, compared with expectations of 32.4670 per dollar yesterday.
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