Russia’s Eurobonds headed for the longest stretch of weekly losses in a year as Moody’s Investors Service signaled the falling ruble is worsening the outlook for the nation’s credit rating, Bloomberg reported. Russia’s $3 billion of bonds due April 2042 fell for a fourth day, lifting the yield two basis points to 6.44% in Moscow, the highest since March and a nine basis-point increase in the past five days. The ruble dropped 0.4% against the dollar to 64.92, set for its eighth weekly decline in a row, the longest streak since November. After rebounding earlier in the year, the ruble is once again the worst performer in emerging markets with a 15% loss this quarter as concern China’s economy is losing steam pummels the price of oil, Russia’s key export. The currency slump means central bank Governor Elvira Nabiullina’s policy responses to the nation’s first recession since 2009 are narrowing, Moody’s said in a note dated Aug. 13.
