Ruble Extends Monthly Retreat as Fed Risk Eclipses Oil Near $50

  • Currency trims biggest rally in emerging markets this year
  • Rabobank recommends investors position for further weakness
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The ruble weakened, extending its first monthly drop since January, as looming U.S. interest-rate increases dimmed the appeal of riskier emerging-market assets and outweighed the benefit of a rebound in oil on Russia’s economy.

The currency of the world’s biggest energy exporter lost 0.6 percent to 66.134 per dollar by 6:30 p.m. in Moscow, extending its drop in May to 2.3 percent. The Micex Index of stocks fell 1.7 percent to 1,902.76, the first decline in six days, while five-year government bonds fell, lifting the yield one basis point to a one-month high of 9.23 percent.