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Ruble Seen Weakening Further in Challenge to Retail, Bonds

  • Premium for puts to calls jumps to highest in over 2 years
  • Depreciation may boost food prices, Ros Agro shares: BCS
Bloomberg business news

Sanctions Keep Sinking the Russian Ruble

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Russia’s ruble is set to weaken further according to options traders -- likely triggering faster inflation, reduced consumer spending and perhaps even a reversal in downward-trending interest rates.

The premium to own one-month puts on the ruble relative to calls jumped for a second session on Tuesday as the toughest U.S. sanctions yet threw cold water on the outlook for most Russian companies, save for those operating in sectors seen benefiting from a weaker currency, such as agriculture.