Oct. 15 (Bloomberg) -- The ruble dropped for a second day against the dollar after oil, Russia’s chief export earner, fell in New York.
The ruble depreciated 0.2 percent to 31.0920 per dollar by 7 p.m. in Moscow. The Russian currency advanced 0.1 percent versus the euro to 40.1975 and was less than 0.1 percent weaker than the central bank’s euro-dollar target basket.
Oil fell 1.8 percent to $90.16 per barrel in New York. Oil and gas account for about 50 percent of Russia’s government revenue. The ruble rallied earlier as companies bought the currency to make monthly payments, including 275 billion rubles ($8.9 billion) in social security contributions, according to Olga Ponomarenko, an economist at ZAO Citibank in Moscow.
“The ruble was supported by the demand for the currency to pay social security contributions earlier in the day,” Ponomarenko said by e-mail. “But oil has slumped which is dragging the ruble down.”
Non-deliverable forwards showed the ruble at 31.5375 per dollar in three months compared with 31.5500 on Oct. 12.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell two basis points to 183, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields fell eight basis points to 7.198 percent.
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