BLBG:Ruble Weakens for First Time in Two Weeks as Crude Oil Retreats
The ruble retreated for the first time in almost two weeks as crude, the country’s chief export earner, declined.
The Russian currency lost 0.6 percent to 30.6375 per dollar at 11:52 a.m. in Moscow. The ruble slid 0.3 percent versus the euro at 40.1850 and 0.5 percent against the central bank’s target euro-dollar basket.
The declines snapped a nine-day winning streak after investors bought riskier assets on bets global policy makers will spur growth and as oil rallied. Brent crude slid 0.2 percent to $116.42 per barrel today. Oil and gas account for about 50 percent of Russia’s state revenue.
The “slight oil price correction” is curbing appetite for the currency of the world’s biggest energy exporter, Dmitry Polevoy, Moscow-based chief economist at ING Groep NV’s Russian unit, wrote in an e-mailed note today.
Non-deliverable forwards showed the ruble at 31.1240 per dollar in three months compared with 30.7198 on Sept. 14.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell 9 basis points to 175, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five- year government bond yields compiled by the Micex was little changed at 7.518 percent.
To contact the reporter on this story: Lyubov Pronina in London at lpronina@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
