Ruble Sinks With Oil as Bets for Rate-Cut Pause Hit Russia Bonds
This article is for subscribers only.
The ruble fell to a four-month low as Brent crude extended losses in a bear market, boosting wagers for Russia’s central bank to limit interest-rate cuts this week to avoid accelerating the selloff.
As the currency weakened as much as 2.4 percent against the dollar, forward-rate agreements showed traders trimming bets for policy easing to the lowest since December. Royal Bank of Scotland Group Plc and Credit Suisse Group AG said the Bank of Russia may opt to keep interest rates on hold on July 31 to avoid exacerbating the ruble’s slump and stoking inflation. Russian bonds decreased for a sixth day.