Ruble Weakens First Time in Three Days as Crude Rally Slows

  • Russian currency trims strongest advance in emerging markets
  • Limited room for further ruble gains: Union Bancaire Privee

Russia’s ruble erased gains, weakening for the first time in three days as crude pared an advance that took it above $50 per barrel.

The currency traded 0.1 percent lower at 65.5990 against the dollar as of 6:58 p.m. in Moscow after climbing as much as 1 percent. Government bonds due in five years fell, raising the yield one basis point to 9.20 percent.

The currency of the world’s biggest energy exporter has rebounded from a record low on Jan. 21 as crude prices have recovered. At the same time, the best rally in emerging markets this year means the ruble has little room to build on its 12 percent advance, according to Koon Chow, a senior macro and currency strategist at Union Bancaire Privee in London.

"The ruble has been unable to appreciate significantly despite the high level of oil prices, because it’s already been an outperforming currency,” said Chow.

The Micex Index of Russian stocks rose 0.8 percent to 1,914.31, climbing for a third day.

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