Ruble Slides First Day in Three as Crude Trades Near Week-Low

The ruble snapped two days of gains and bond yields rose as oil, Russia’s chief export earner, traded near the lowest level in a week.

The ruble slid 0.3 percent to 30.90 against the dollar and rose 0.3 percent versus the euro to 40.17 by the close in Moscow. The currency was little changed versus the central bank’s euro-dollar target basket. An index of five-year government bond yields rose nine basis points to 6.5632 percent.

Crude in New York lost 1.4 percent to $86.65 a barrel after the European Central Bank cut its euro-area growth forecasts and as U.S. lawmakers struggled to reach agreement on a budget plan. Oil and natural gas account for about 50 percent of Russian government revenue.

“The U.S. fiscal cliff is at the peak of everyone’s interest right now,” Sergey Fishgoyt, deputy head of foreign exchange at Otkritie Financial Corp. in Moscow, said by e-mail.

A few dozen Republicans joined a bipartisan push to break an impasse between U.S. President Barack Obama and House Speaker John Boehner over taxes for the highest-earning Americans, signing a letter calling for openness to “all options.”

Non-deliverable forwards showed the ruble at 31.3672 per dollar in three months.

The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries rose one basis point to 193, according to JPMorgan Chase & Co.’s EMBI Global Index.

To contact the reporters on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net; 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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