Ruble plunges to new ten- month low

The Russian ruble fell to a new ten-month low on Tuesday as oil prices fell again.

The official exchange rate of Russian ruble for tomorrow settlement fell 62.80 kopecks against the dollar to 31.4960 and 71.06 kopecks to the euro to 42.92, the central bank said on Tuesday.

The value of the bi-currency basket, comprising $0.55 and 0.45 euros, increased by 67 kopecks to 36.64 rubles.

On Monday, the ruble hit a 10-month low to the dollar and edged down against the euro as the price for oil, the country’s key export, went down.

Investor jitters ahead of December parliamentary elections and March presidential polls also contributed to the fall.

“The combination of a surge in rates and a weaker ruble is unnatural … and, hence, is indicative of price-insensitive capital outflows,” VTB Capital investment bank said in a research note.

“As this coincided with the turmoil at the Pravoye Delo party …, we see this as a reminder that the pre-election rise in the perceptions of political risks might keep capital outflows elevated.”

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