Russia devalued the ruble for the fifth time in a month, widening its trading band against the dollar and euro after reserves fell $161 billion defending the exchange rate.
Bank Rossii extended the amount the ruble can decline against a target exchange rate to 7.7 percent, from 6.7 percent yesterday and 3.7 percent a month ago. The band was widened by 30 kopeks today, said a spokesman who declined to be identified on bank policy. The currency weakened 0.7 percent against the basket.
“They don’t have a choice but to let it weaken and the faster they do it the better,” said Beat Siegenthaler, head of emerging markets strategy in London at TD Securities Ltd. “Regular weekly steps are now the most likely scenario.”
LEITURAS COMPLEMENTARES: ““Crash” financeiro na Rússia está próximo” (Anders Aslund); “Crisis-hit Russia must scale down its ambition” (Robert Skidelsky); “Entretanto na Rússia”; “Na Rússia”;Rússia: nova desvalorização do Rublo