Ruble Weakens 2nd Day Versus Dollar on U.S., Europe Debt Crises

The ruble weakened for a second day versus the dollar as debt concerns in the U.S. and Europe hurt demand for riskier assets.

Russia’s currency depreciated 0.3 percent to 27.6024 per dollar at the 7 p.m. close in Moscow, the biggest drop since July 18. The ruble was 0.3 percent stronger at 39.4975 per euro, leaving it steady at 32.9552 against the central bank’s target dollar-euro basket.

Emerging-market currencies declined as concern mounted that U.S. lawmakers will fail to agree on the federal government’s debt ceiling by next week’s deadline. Standard & Poor’s cut Greece’s credit rating, saying it will partially default once a European-Union bailout is implemented.

Oil traded below $98 a barrel for a second day after a U.S. Energy Department report showed the country’s crude stockpiles climbed 2.3 million barrels last week, while a Bloomberg News survey forecast a drop of 2 million barrels. Crude for September delivery slid as much as 0.9 percent to $96.51 a barrel.

“With oil prices moderating, the Russian bourses will struggle to make much headway,” Johannesburg-based Tradition Analytics wrote in an e-mailed note to clients.

Russian government bonds rose, pushing the yield on the ruble Eurobond due in 2018 down one basis point, or 0.01 percentage point, to 6.847 percent. Non-deliverable forwards, which provide a guide to expectations of currency movements and allow companies to hedge against them, show the ruble at 27.8625 per dollar in three months, compared with 27.816 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

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