Hawkish Fed hints seen limiting yield-maximizing strategy Traders seek cues from crude with link strongest since May The ruble weakened for a second day as speculation the dollar will strengthen under tighter Federal Reserve policy dimmed its carry-trade appeal and it came under the influence of weaker oil prices. Russia’s currency weakened 0.3 percent to 65.065 against the dollar by 11:54 a.m. in Moscow. The Micex index of major stocks dropped 0.8 percent after closing at new record high of 1,993.35 on August 26. Crude oil fell 1.4 percent in London to $49.20. Indications by Federal Reserve Chair in a speech at an annual symposium in Jackson Hole, Wyoming on Friday that the U.S. recovery is gathering steam were interpreted by traders as a hint of higher rates later this year. That would wipe out profits from buying higher-yielding rubles with borrowed dollars, known as the carry trade. “The […]