Ruble Weakens Second Day as Crude Oil Retreats After Output Gain
The ruble weakened for a second day as crude oil, Russia’s main export earner, slid.
The currency fell 0.4 percent to 31.2010 as of 7 p.m. in Moscow and was little changed versus the euro at 40.2200. The ruble sank 0.2 percent agains the central bank’s euro-dollar target basket.
Oil retreated 3.4 percent to $88.85 per barrel in New York after the U.S. Energy Department said crude output rose 11,000 barrels a day to 6.52 million last week, the most since December 1996. Oil and gas account for about 50 percent of Russia’s state revenue.
Non-deliverable forwards showed the ruble at 31.6753 per dollar in three months compared with 31.5938 yesterday.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell three basis points to 198 basis points, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields rose four basis points to 7.569 percent.
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