Russia's Ruble Declines Against U.S. Dollar, Currency Basket

By Emma O'Brien

Aug. 26 (Bloomberg) -- Russia's ruble slid against the dollar-euro basket used by policy makers to manage its fluctuations.

The currency weakened 0.3 percent to 29.7470 against the basket by 10:33 a.m. in Moscow, from 29.6694 yesterday. The basket is calculated by multiplying the rate to the dollar by 0.55, the euro rate by 0.45 and then adding the two together. Russia's central bank keeps the ruble confined to a trading corridor against the basket to limit the impact of any movements on the competitiveness of Russian exports.

The ruble dropped 0.5 percent to 24.5686 per dollar, from 24.4393 yesterday. It was little changed at 36.0775 per euro.

Russia's houses of parliament yesterday voted to endorse the independence of Georgian breakaway regions South Ossetia and Abkhazia. Lawmakers called on President Dmitry Medvedev to recognize the two areas, which split from Georgia in wars in the early 1990s.

The world's largest energy exporter is also reviewing its relationship with the North Atlantic Treaty Organization and its bid to join the World Trade Organization. Russia sent troops, tanks and jets into Georgia Aug. 8 after Georgian soldiers allegedly attacked Russian peacekeepers and citizens in South Ossetia, which borders Russia.

The ruble has lost 5.1 percent to the dollar and advanced 1.7 percent against the euro during August.

To contact the reporter on this story: Emma O'Brien in Moscow at eobrien6@bloomberg.net