The ruble dropped the most in almost two months as crude oil, Russia’s main export earner, declined for a fourth day and a report signaled the global economy is slowing.
The ruble depreciated as much as 1.5 percent, the biggest intraday drop since July 23, before trading 0.5 percent lower at 31.3542 at 4 p.m. in Moscow. The currency has weakened 2.9 percent in four days, heading for its first weekly decline in three weeks.
Oil dropped to a six-week low in New York as reports signaled economies are slowing in Asia and Europe. Euro-area services and manufacturing output fell to a 39-month low in September and Chinese manufacturing probably contracted for an 11 month, according to reports from London-based Markit Economics and HSBC Holdings Plc. Oil and gas contribute about 50 percent of Russia’s state revenue.
“In the near future, the ruble can lose the advantage it gained over the past weeks, following the resumed decline in oil prices,” ZAO Raiffeisenbank said in an e-mailed note today.
Non-deliverable forwards showed the ruble at 31.8782 a dollar in three months compared with 31.6875 yesterday.
The ruble gained 0.4 percent against the euro to 40.5875. The moves against the dollar and the euro left the currency 0.1 percent weaker the central bank’s target basket.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries rose five basis points to 198, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields compiled by Micex fell four basis points to 7.588 percent.
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