Gold Drops to $1,200/oz for First Time Since June in New York
Ruble Extends Weekly Decline After Crude Oil Erases Advance
The ruble fell against the dollar for the third day this week, extending a 1.6 percent decline this week as crude, Russia’s biggest revenue-earner, dropped in New York.
The ruble lost 0.1 percent to 31.3625 per dollar by the 7 p.m. close in Moscow. The currency weakened less than 0.1 percent to 35.5385 against the central bank’s euro-dollar basket and was little changed against the euro at 40.6425.
Oil fluctuated as traders awaited data that may signal that economic growth is accelerating in the U.S., the world’s biggest crude consuming country. After closing at its lowest since July 10 yesterday, crude dropped 2 cents to $85.71 a barrel by the close of ruble trading in Moscow.
“Markets stay nervous,” Dmitry Polevoy, a Moscow-based economist at ING Groep NV, said by e-mail. “This morning we saw massive non-resident flows into the ruble on overall optimism, but they started closing their positions again when oil moved down.”
Non-deliverable forwards showed the ruble at 31.8625 per dollar in three months.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell one basis point to 180, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields added five basis points to 7.09 percent.
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