Russian Ruble Weakens Toward 70 Per Dollar as Oil Resumes Slide
- Currency's fair value 70-75 per dollar, Sberbank CIB says
- ING, Sberbank predict Bank of Russia will cut rates on Friday
This article is for subscribers only.
The ruble reversed gains, approaching 70 per dollar for the first time since August, as the price of Brent crude fell below $40 a barrel.
Russia’s exchange rate declined 0.6 percent to 69.9140 per dollar by 4:49 p.m. in Moscow as Brent crude, used to price the nation’s main export blend, fell to as low as $39.88 a barrel. The ruble correlation with oil has receded this month, leading Sberbank CIB to say on Tuesday that the currency was "slightly overvalued" and should be trading as much as 6.8 percent weaker than current levels.