Bloomberg News

Ruble Heads for 2nd Weekly Decline as Bond Outflows Accelerate

December 20, 2013

The ruble fluctuated, heading for a second consecutive weekly decline, as outflows from Russian bond funds accelerated to the most since June.

The ruble was little changed at 38.4151 against the central bank’s target basket of dollars and euros by 6 p.m. in Moscow, when the regulator stops its market operations. The yield on January 2028 government bonds fell two basis points, or 0.02 percentage point, to 8.03 percent.

The ruble weakened for eight out of last nine weeks, losing 4.6 percent against the basket since reaching a three-month high Sept. 19. Outflows from funds invested in Russian bonds have totaled $3.6 billion since the end of May, after Federal Reserve Chairman Ben S. Bernanke first proposed reducing monthly debt purchases, OAO Gazprombank said, citing EPFR Global data.

“Russian bonds haven’t been able to escape the common trend for all emerging markets,” Gazprombank analysts Alexey Demkin and Alexey Todorov said in an e-mailed note.

The Bloomberg Dollar Index dropped for the first time in four days, sliding 0.2 percent to 1,021.13, as an index of the 20 most actively-traded emerging-market currencies against the dollar fell 0.1 percent to 92.0071, headed for the lowest since Sept. 6.

The ruble was little changed versus the dollar at 33.003, heading for 0.5 percent decline for the week. The currency was little changed against the euro at 45.0335 today, strengthening by 0.1 for the week.

To contact the reporter on this story: Vladimir Kuznetsov in Moscow at vkuznetsov2@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus