The ruble will probably depreciate more than 6 percent against the dollar this year as Russian policy makers seek to spur the stuttering economy, the currency’s top forecaster said.
Russia’s jobless rate fell to a record in May as businesses raised salaries faster than economists predicted, helping stem a three-month slowdown in real-wage growth.
Russia’s manufacturing industries reported contraction for a sixth consecutive month as ruble weakness drives inflation and international tensions over violence in Ukraine threatens the economy.
Russia’s central bank sprung a surprise by raising its benchmark interest rate after Standard & Poor’s downgraded the world’s biggest energy exporter for the first time in six years as capital outflows threaten growth.
Russian services industries declined for a second month in April, contracting at the fastest pace since May 2009 as businesses including telecommunications and banks weakened, HSBC Holdings Plc said.
Ukraine will probably let its currency devalue 10 percent to 9 hryvnia per dollar by year-end to restart International Monetary Fund financing, according to HSBC Holdings Plc.
The ruble’s appreciation following the European Central Bank’s interest-rate cuts will be short- lived as Russia’s economy stagnates, HSBC Holdings Plc said.
OAO Magnit, last year’s Russian stock-market darling, is turning into one of this year’s laggards.
"The output recovery registered in manufacturing in July is fragile."
- Alexander Morozov on Aug 01, 2014