Ruble Drops with Oil, Bank Rossii Eases Control Over Currency

The Russian ruble declined today as prices for crude oil dropped amid concerns about the situation in Europe and Russia’s central bank widened the currency’s trading range.
Crude oil declined, falling below the $100 per barrel level to the lowest price in a week, after worries about Europe’s debt crisis strengthened. Crude is the main export of Russia. The Bank Rossii (the Bank of Russia) increased the corridor in which the ruble may trade against the dollar and the euro from 5 rubles to 6 rubles. Speculators bet that the Russian currency will fall further, as was shown by non-deliverable forwards.
USD/RUB rose from 31.8065 to 32.2075 as of 11:52 GMT today. The daily high was 32.3307 and the low was 31.7800.

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