Ruble Weakens Second Day as Crude Oil Fluctuates Before Election

The ruble slid for the second day as crude oil, Russia’s main export earner, swung between gains and losses before presidential elections in the U.S.

The ruble weakened 0.3 percent to 31.5524 per dollar by 12:19 p.m. in Moscow. The markets were closed yesterday for a national holiday. The currency rose 0.2 percent to 40.3120 versus the euro and was little changed at 35.4921 versus the central bank’s euro-dollar basket.

Oil dropped as much as 0.2 percent to $85.45 before trading at $85.51. Crude and natural gas account for about 50 percent of Russia’s state revenue. U.S. voters decide today whether to return Barack Obama as president or elect his challenger Mitt Romney.

Bank Rossii plans to review interest rates on Nov. 9. The regulator will probably leave the refinancing rate on hold at 8.25 percent, according to a median estimate of 21 economists surveyed by Bloomberg.

Non-deliverable forwards showed the ruble at 32.0218 per dollar in three months.

The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries dropped one basis point to 191, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields gained two basis points to 7.0840 percent.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

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

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