Dec. 28 (Bloomberg) -- The ruble depreciated for a second day against the dollar, heading for the lowest level in a week, after Bank Rossii loosened currency controls by widening the ruble’s trading corridor and oil declined from a six-week high.
The Russian currency depreciated 1.1 percent to 31.7200 at 7 p.m. in Moscow, set for its weakest closing level since Dec. 21 against the U.S. currency. The ruble retreated 0.5 percent to 41.2000 versus the euro. That put it at 35.9860 against the central bank’s target dollar-euro basket.
The central bank increased the trading corridor in which it manages the ruble against the dollar-euro basket to 6 rubles from 5 rubles and reduced the amount of interventions needed to move the band as it focuses on targeting inflation, Bank Rossii said in a statement after markets closed yesterday. Crude snapped a six-day streak of gains to retreat as much as 0.7 percent in New York trading.
Investors increased bets the Russian currency will weaken further, with non-deliverable forwards showing the ruble at 32.1050 per dollar in three months, compared with expectations of 31.6665 per dollar yesterday. The contracts are a guide to expectations of currency movements as they allow investors and companies to fix the exchange rate at a particular level in the future.
Russia’s dollar-denominated Eurobonds due in 2020 advanced, pushing the yield two basis points lower to 4.571 percent.
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