Ruble’s Seventh Week of Losses Has Taken Drop Too Far for ING

The ruble fell, extending its seventh straight weekly decline, as ING Groep NV and VTB Capital said the Russian currency’s retreat with oil has gone too far. A 14 percent depreciation since the end of June, the most among 31 major currencies tracked by Bloomberg, has pushed the ruble’s relative strength index below 30 for the past week, the threshold signaling to some technical analysts that an asset is oversold. With the price of Brent crude trading near $50 a barrel, the exchange rate should be closer to 61 against the dollar, VTB Capital analysts Maxim Korovin and Tatiana Zueva said in an e-mailed note. Dmitry Polevoy, the chief economist for Russia at ING Groep NV in Moscow, echoed the view, saying the ruble’s fair value is closer to 61-62, as much as 5 percent stronger than it is currently trading. While the world’s largest energy exporter’s state budget […]

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