Sunday, 28 August 2011

Oil Doesn’t Stop Falling, Drags Ruble Along

Today the Russian ruble continued to indicate a downward trend as crude oil continued to decline, dropping below $81 per barrel on the speculation demand for fuel can wane as the international growth is stalling. Currently the Russian currency erased its losses, but it’s unclear how long may it maintain gains.

Oil, the main export revenue earner for Russia, slumped 2.4 percent to $80.83 before trading at $80.81. Crude has fallen five.7 percent over this week and headed for a fourth weekly drop. The Russian currency weakened 1.3 percent yesterday and 0.2 percent over this week. Investors increased bid that the ruble can decline any.

USD/RUB fell from 29.1175 to 29.0787 as of 15:24 GMT today, while during the trading session the currency pair reached the daily high of 29.3575.

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