Ruble Gains on ECB Seen Short-Lived to HSBC on Stalling Economy - Bloomberg

Ruble Gains on ECB Seen Short-Lived to HSBC on Stalling Economy - Bloomberg:



"The ruble’s appreciation following the European Central Bank’s interest-rate cuts will be short-lived as Russia’s economy stagnates, HSBC Holdings Plc said.



The ruble gained the most in three weeks, adding 0.7 percent to 47.2500 per euro by 6 p.m. yesterday in Moscow, when the central bank ends market operations. The advance pared its year-to-date depreciation to 4.4 percent versus the euro and 5.3 percent per dollar, the biggest drop among 24 emerging-market currencies tracked by Bloomberg after Argentina’s peso.



ECB President Mario Draghi yesterday reduced the deposit rate to minus 0.1 percent from zero in a bid to spur bank lending and boost the economy, making it the world’s first major central bank to use a negative rate. The ruble advanced along with many other east European assets on bets more capital would flow into higher-yielding and riskier assets."



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