Ruble Rebounds as Norway’s Krona, Australia’s Dollar Tumble

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Ruble Rebounds as Norway’s Krona, Australia’s Dollar TumbleThe ruble rebounded after a three-day losing streak amid record volatility and minimal trading volumes. The currency surged 1.5 percent versus the dollar before easing 0.7 percent up at 47.08 as of 5:34 p.m. Moscow time.

Investors also expected the Organization of Petroleum Exporting Countries to reduce output today in order to boost prices. U.S. markets weren’t open due to the Thanksgiving holidays.

“There is just one heck of a lot of volatility before the OPEC summit,” Vladimir Miklashevsky, a Helsinki-based strategist at Danske Bank A/S, told Bloomberg News. “Given the low trading volumes, any sizable trade can trigger a strong market reaction.”

The yield on Russia’s 10-year bonds advanced three basis points to 10.44 percent, the most since October 2009. The RTS stock index, which is denominated in dollars, rose 0.6 percent to 1,034.02.

Brent crude prices fell 1.7 percent to $76.45 per barrel, the lowest level in four years. This has affected the attractiveness of assets in energy-producing nations such as Russia.

The fact that OPEC decided not to change its output target saw the Norwegian krona record its biggest decline this month as it looked set to touch its lowest level in five years.

The krona fell 1.2 percent to trade at 6.9125 per dollar as of 3:32 p.m. in London, its biggest decline since Oct. 29. It touched 6.9346 on Nov. 5, its lowest level since March 2009. It fell 1.1 percent to 8.6314 per euro. The euro dropped 0.2 percent to $1.2487, while the dollar remained slightly unchanged at 117.78 yen.

Declining crude prices also saw the Canadian dollar decline 0.6 percent on Thursday to 48.095 per dollar, after previously advancing up to 1.5 percent. Energy is Canada’s biggest export. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com