Ruble Snaps Four Days of Gains Versus Dollar as Oil Falls
The ruble snapped four days of gains as oil, Russia’s biggest revenue earner, retreated.
The ruble slid 0.2 percent against the dollar to 30.6650 by the 7 p.m. close in Moscow. It lost 0.4 percent versus the central bank’s target euro-dollar basket to 34.9153 and declined 0.6 percent versus the euro to 40.1100.
Oil dropped as much as 0.8 percent to $86.06 a barrel in New York as U.S. lawmakers disagreed on measures to avert automatic spending cuts and tax increases known as the fiscal cliff that threaten to curb economic growth and fuel demand. Oil and gas account for about 50 percent of government revenue.
“The ruble is following oil weakness today,” Anton Nikitin, a VTB Capital analyst in Moscow, said by e-mail.
Non-deliverable forwards showed the ruble at 31.1265 per dollar in three months.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell three basis points, or 0.03 percentage point, to 174, according to JPMorgan Chase & Co.’s EMBI Global Index.
To contact the reporter on this story: Alex Nicholson in Moscow at firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com