Bloomberg News

Ruble Drops Most in Week as Crude Oil Retreats on Stimulus Woes

September 26, 2012

The ruble dropped the most in almost a week as crude, Russia’s biggest export earner, retreated on concern new U.S. stimulus measures won’t shore up economic growth.

The ruble weakened as much as 1.1 percent, the most on an intraday basis since Sept. 20, and traded down 0.9 percent at 31.2374 versus the dollar as of 10:14 a.m. in Moscow. The currency lost 0.2 percent versus the euro to 40.1860 and sank 0.5 percent against the central bank’s target euro-dollar basket.

Crude in New York retreated after a report showed rising U.S. stockpiles and the Federal Reserve Bank of Philadelphia President Charles Plosser said a new stimulus plan probably won’t boost economic growth. Oil and natural gas contribute about 50 percent of Russian government revenue.

Non-deliverable forwards showed the ruble at 31.6865 per dollar in three months.

The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries rose four basis points to 214, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields compiled by the Micex fell three basis points to 7.610 percent yesterday.

To contact the reporter on this story: Alex Nicholson in Moscow at

To contact the editor responsible for this story: Gavin Serkin at

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