Ruble Weakens Second Day as Crude Oil Drops, Europe Woes Mount
The ruble retreated for a second day as oil traded close to a weekly low and concern Europe’s debt crisis will deepen curbed appetite for riskier assets.
The ruble fell 0.2 percent against the dollar by 11.30 a.m. in Moscow to 30.1325, the lowest level in a week. The currency gained 0.1 percent against the euro to 40.5885, leaving it unchanged against the central bank’s target dollar-euro basket at 34.8363, 19 kopeks weaker than the level at which traders say the regulator may intervene to curb gains.
Crude oil, Russia’s main export, declined 0.2 percent in New York $95.95 per barrel. Data today may show retail sales in the euro area slid in December, while the National Institute of Economic and Social Research said the U.K. economy faces risks of prolonged stagnation.
“Deterioration in global market sentiment might have a sharp negative impact on the ruble,” VTB analysts Maxim Oreshkin and Anton Nikitin wrote in an e-mailed note.
The ruble has strengthened 0.9 percent against the dollar this year, data compiled by Bloomberg show.
The ruble’s retreat is temporary and part of an overdue correction, Denis Korshilov, head of fixed income, currencies and commodities at Citigroup Inc., said by phone from Moscow. The ruble may test 34.90 rubles versus the basket level before rallying he said.
“It’s not a turnaround,” Korshilov said.
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