Ruble Weakens Against Dollar, Bond Yields Rise on Oil Decline
The ruble depreciated against the dollar for the first day in three and yields on Russia’s local debt rose as oil, the country’s main export, declined.
The Russian currency lost 0.3 percent to 31.6735 per dollar as of 10:35 a.m. in Moscow, paring yesterday’s 1.3-percent gain. Russia’s 54 billion rubles ($1.7 billion) of local debt due February 2027 fell, increasing the yield by four basis points, or 0.04 percentage point, to 8.31 percent.
Brent crude dropped 0.3 percent to $109.28 per barrel as investors sought to profit from its 3.4-percent gain over the previous two trading sessions. Oil and gas together contribute about 50 percent of Russia’s state revenue, according to the government’s estimates.
The ruble dropped 0.2 percent to 39.23 per euro and 35.08 against the central bank’s target dollar-euro basket. Investors increased bets on the currency weakening, with non-deliverable forwards showing the ruble at 32.1604 per dollar in three months, compared with expectations of 32.089 per dollar yesterday.
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