Ruble Rout Forcing $13 Billion of Support Eases as Crude Gains - Bloomberg

Ruble Rout Forcing $13 Billion of Support Eases as Crude Gains - Bloomberg:



"The ruble pared its sixth straight week of declines after Russia spent $13 billion to support the currency this month and oil prices rose from a four-year low.



The ruble advanced to 0.1 percent to 45.9288 against the central bank’s basket of dollars and euros by 6 p.m. in Moscow, paring the weekly retreat to 1.9 percent. Brent oil rallied by 2 percent in London to $86.17 per barrel, its second day of gains.



Brent crude’s 25 percent tumble from a June peak has worsened the outlook for Russia, which derives more than half of its budget revenue from energy. The economy is teetering on the brink of recession as sanctions over the Ukraine crisis spur capital outflows and a domestic dollar shortage. Policy makers have stepped up efforts to buttress the ruble, and the central bank announced yesterday that it will offer as much as $3.5 billion of foreign currency repurchase agreements at debut auctions this month."



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