Ruble Retreats for Second Day as Investors Bet Gains Overdone
The ruble dropped for a second day as investors speculated gains were overdone.
The ruble slid 0.2 percent against the dollar to 30.7250 by the close in Moscow, paring its weekly advance to 0.5 percent. It lost 0.2 percent versus the central bank’s target euro-dollar basket to 34.9978 and declined 0.3 percent versus the euro to 40.22.
The ruble has climbed 3.4 percent since reaching a two- month low on Nov. 13. Russian markets are closed for New Year and Christmas holidays in the first week of January.
Investors “cut their speculative long ruble positions,” Anton Nikitin, an analyst at VTB Capital in Moscow said by e- mail. “People prefer to be light before the holidays.”
Non-deliverable forwards showed the ruble at 31.1755 per dollar in three months.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries rose one basis point to 178, according to JPMorgan Chase & Co.’s EMBI Global Index.
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