Ruble Slides for Second Week Versus Dollar on Lower Crude Oil, U.S. Data
The ruble fell for a second week against the dollar, as oil, Russia’s chief export, traded near its lowest level in six weeks.
The Russian currency weakened 0.7 percent to 32.0125 at the 7 p.m. close in Moscow, a 1.7 percent weekly drop. The ruble fell 0.7 percent to 41.7050 versus the euro, leaving it 0.7 percent down at 36.3741 against the central bank’s target dollar-euro basket.
Oil futures dropped as much as 0.5 percent to $93.39 a barrel in New York after falling 1.1 percent yesterday to their lowest close since Nov. 2. U.S. industrial production shrank for the first time since April and European factory output contracted, damping bets crude demand will rise.
Investors increased wagers the Russian currency will weaken further, with non-deliverable forwards showing the ruble at 32.4242 per dollar in three months, compared with expectations of 32.2590 per dollar yesterday.
Russia’s dollar-denominated Eurobond due in 2020 rose, lowering the yield eight basis points to 4.674 percent.
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