Ruble Weakens Second Day Before Auction as Crude Oil Retreats

The ruble depreciated for a second day as oil fell and the central bank offered banks cash at an auction in a bid to bring down borrowing costs.

The ruble weakened 0.1 percent against Bank Rossii’s target basket of dollars and euros to 37.4838 by 6 p.m. in Moscow, when the central bank stops its open market operations. The currency added as much as 0.1 percent earlier. The yield on ruble-denominated bonds due February 2027 rose 5 basis points, or 0.05 percentage point, to 7.72 percent.

Crude, Russia’s chief export earner, declined 1.2 percent to $110 per barrel in London. Bank Rossii offered 500 billion rubles ($15 billion) for three months to lenders today with a 5.76 percent cut-off rate, announcing after 6 p.m. that it placed the full amount. The regulator kept its main interest rate unchanged at 5.5 percent, matching the forecast of all 23 economists in a Bloomberg survey.

The start of the monthly tax period tomorrow, during which companies must pay about 900 billion rubles of duties, will help the local currency recoup its declines, Vladimir Miklashevsky, a trading desk strategist at Danske Bank S/A in Helsinki, said by e-mail.

The ruble was little changed against the dollar at 32.2770 and declined 0.2 percent against the euro to 43.85.

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