Ruble Falls Second Day as Spain Sees no Pressure for Bailout

The ruble fell for a second day, following a decline in the euro, after Spanish Prime Minister Mariano Rajoy said his nation doesn’t feel pressure to ask for a bailout, fueling concern the debt crisis will worsen.

The ruble depreciated 0.3 percent against the dollar to 30.8550 by 7 p.m. in Moscow, paring its gain this week to 0.7 percent. The Russian currency rose 0.2 percent versus the euro to 40.2325. It was little changed against the central bank’s euro-dollar target basket.

The euro fell 0.3 percent in London after dropping 0.4 percent yesterday. Rajoy said at the European Union summit in Brussels today that the Spanish government would take a decision on asking for any bailout based on Spain’s interest.

“What you see as weakness in dollar-ruble mainly reflects softer euro,” Benoit Anne, the head of emerging-market strategy at Societe Generale SA in London, said by e-mail. The main reason is “negative headlines on Spain, with more reluctance to ask for a bailout on fast-track basis,” Anne said.

Crude for November delivery dropped 0.5 percent to $91.62 a barrel in New York Mercantile Exchange, falling for a second day. Russia is the world’s biggest energy exporter. Oil and gas contribute about 50 percent of government revenue.

Non-deliverable forwards showed the ruble at 31.3415 per dollar in three months compared with 31.2785 yesterday.

The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries rose three basis points 171, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields fell 10 basis points to 6.982 percent.

To contact the reporter on this story: Lyubov Pronina in London at lpronina@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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