BLBG:Ruble Sinks Most In Week As Crude Oil Drops On Weak U.S. Data
The ruble dropped the most in almost a week as crude oil, Russia’s main export earner, retreated on weak global economic data.
The ruble slid 0.5 percent to 32.4631 per dollar at 12:25 p.m. in Moscow, the steepest decline since Aug. 30. Russia’s currency was little changed versus the euro at 40.6025 and retreated 0.2 percent against the central bank’s target euro- dollar basket.
Oil traded near the lowest price in almost a week in New York after a report yesterday showed manufacturing declined in the U.S., the world’s biggest crude consumer. Oil and gas account for about 50 percent of Russia’s government revenue. Australia’s economy slowed last quarter, while China may see its 2012 industrial output growth decelerate, Securities Times reported today, citing China’s Ministry of Industry and Information Technology.
“There is weakening real economy across the world,” Dmitry Polevoy, a Moscow-based economist at ING Groep NV, said by e-mail.
A weaker ruble exchange rate when adjusted for inflation could benefit economic growth, Interfax reported yesterday, citing Deputy Economy Minister Andrey Klepach.
Non-deliverable forwards showed the ruble at 32.9320 per dollar in three months compared with 32.7590 yesterday.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries rose one basis point to 221, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields compiled by the Micex fell six basis points to 7.57 percent.
To contact the reporter on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
