The ruble extended losses on Wednesday afternoon as oil prices slid to a new five-year low after the OPEC oil producers' group cut its demand forecast for next year. At 6:50 p.m., the ruble was down around 1.1 percent against the dollar at 54.65 and down 1.6 percent against the euro at 67.92, hitting a new all-time low against the euro-zone currency. Global oil benchmark Brent was around 3 percent lower, below $65 a barrel, in late afternoon trading in Moscow.
"Oil is playing against the ruble, but on the other hand we are awaiting the Central Bank, which could unexpectedly 'give a thump on the head' with interventions," said Pyotr Neimyshev, a forex trader at bank Otkritie. Oil and gas account for two-thirds of Russia's exports, so oil price swings have an important impact on the country's balance of payments and therefore the currency.
see in: Ruble in crisis
INC News, 10/12/2014
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