Sept. 20 (Bloomberg) -- The ruble slid to the lowest in a week as crude oil, Russia’s main export earner, declined for a fourth day on bets global economic growth is slowing.
The ruble depreciated as much as 1.5 percent before closing down 0.2 percent at 31.2585 against the dollar in Moscow. The currency has retreated 2.5 percent in four days, heading for its first weekly drop in three.
Oil sank as much as 1.4 percent to $90.66 a barrel in New York as reports signaled economies are slowing in Asia and Europe. Euro-area services and manufacturing output fell to a 39-month low in September and Chinese manufacturing probably contracted for an 11 month, according to reports from London-based Markit Economics and HSBC Holdings Plc. Oil and gas contribute about 50 percent of Russia’s state revenue.
“The ruble can lose the advantage it gained over the past weeks following the resumed decline in oil prices,” ZAO Raiffeisenbank analysts wrote in an e-mailed note today.
Non-deliverable forwards showed the ruble at 31.7155 a dollar in three months compared with 31.6875 yesterday.
The ruble gained 0.6 percent against the euro to 40.4925. The moves against the dollar and the euro left the currency 0.3 percent stronger than the central bank’s target basket.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries rose seven basis points to 200, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields compiled by Micex fell eight basis points to 7.547 percent.
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