Russian markets experience recession - 1

The dollar to ruble ratio continued growth today to 32.55 rubles per dollar, the highest rate since early October 2011, MICEX RTS reports.

The rate increased by 0.33 rubles to 32.50 rubles at 11.28am. Euro rate increased by 0.16 rubles to 40.51 rubles, the currency basket of $0.55 and 0.45 euro increased by 0.25 rubles to 36.10 rubles.

The euro rate at Forex dropped from $1.2486 to $1.2460 at 11.30am.

Currency deterrence started on Monday for the first time since January 17. Interventions totaled $3 million. PRIME said that over $15 million were sold yesterday.

The Russian Central Bank will hopefully stabilize the market where the dollar increased by 10% (3 rubles) since early May.

The Russian stock market was affected by news from Asia, especially China, and reduction of Brent oil prices to $107 per barrel.

MICEX index dropped by 0.7% to 1317.31 points at 10.38am, RTS by 1.2% to 1291.20 points.

The US stock market had positives tendencies. Fund indexes of the Asian Pacific Region is dropping due to China.

The Euro dropped below $1.25 due to reduction of Spain’s rating by Egan-Jones, an authoritative agency comparable with S&P, Moody's and Fitch, from BB- to B.

Bankia SA (Spain) requested financial support. There are rumours that Spain may need the same aid Greece, Ireland and Portugal had requested.

The RTS index is at about 1300 points.