BLBG:Ruble Heads for 2-Week Low to Dollar as Oil Slides in New York
The ruble depreciated against the dollar, poised for its weakest close in two weeks as oil, Russia’s chief export earner, declined in New York.
Russia’s currency slid 0.4 percent to 27.8998 per dollar as of 10:29 a.m. in Moscow, after weakening or remaining unchanged for the past six days. A close at that level would be the lowest since July 20. The ruble was little changed at 39.5553 per euro, leaving it steady at 33.1403 versus the central bank’s target dollar-euro basket.
Moody’s Investors Service warned the U.S. credit rating may be downgraded, stoking concern oil demand may drop in the world’s biggest crude consumer. Crude for September delivery fell 0.6 percent to $93.23 a barrel. Oil is also declining after breaching a technical support level.
Russian government bonds rose, pushing the yield on the dollar Eurobond due in 2020 down one basis point, or 0.01 percentage point, to 4.158 percent. That’s the lowest since Nov. 4, according to data compiled by Bloomberg.
Non-deliverable forwards, which provide a guide to expectations of currency movements and allow companies to hedge against them, show the ruble at 28.1775 per dollar in three months, compared with 28.1681 yesterday.
To contact the reporter on this story: Jack Jordan in Moscow at jjordan22@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
