Ruble Falls for First Day in Three Against Dollar as Crude Oil Retreats

The ruble weakened against the dollar for the first day in three as oil, Russia’s chief export earner, declined.

The ruble lost 0.3 percent to 30.525 per dollar at the 7 p.m. close in Moscow, erasing earlier gains of as much as 0.7 percent. The ruble gained 0.2 percent to 41.645 per euro, leaving it little changed at 35.529 against the central bank’s target dollar-euro basket.

Crude lost 1.4 percent to $97.62 per barrel in New York after Italy’s borrowing costs rose to a euro-era record at a debt auction, a sign Europe’s debt crisis may drag on. The European Union is Russia’s largest trading partner.

“The ruble is trading with global risk these days,” Benoit Anne, head of emerging-markets strategy in London at Societe Generale SA, said by e-mail. “The significance of domestic fundamentals is being overwhelmed by global factors.”

Russia’s economic growth accelerated in the third quarter for the first time since last year as gross domestic product expanded 4.8 percent from a year earlier, the fastest pace since the second quarter of 2010, the Federal Statistics Service said in an e-mailed statement today. The median estimate in a Bloomberg survey of 14 economists was 5 percent.

The government’s $3.5 billion of bonds due 2020 climbed for the first day in three, pushing the yield down 19 basis points, or 0.19 percentage point, to 4.292 percent. Investors increased bets the ruble will weaken further, with non-deliverable forwards showing the currency at 30.9751 per dollar in three months, compared with 30.8255 Nov. 11.

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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