Ruble Drops on Oil as Russia Credit Risk Climbs After Fitch Cut
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The ruble weakened for a second day and the cost of insuring Russian debt against default increased after oil extended losses and Fitch Ratings lowered the country’s credit score to one step above junk.
The currency of the world’s biggest energy exporter dropped 2.3 percent to 63 versus the dollar by 8 p.m. in Moscow. The yield on Russia’s five-year ruble bonds rose 126 basis points to 16.68 percent, the highest since Dec. 17. Five-year credit default swaps increased 22.5 basis points to 601, making it the world’s sixth-riskiest credit, according to data compiled by Bloomberg.