Ruble Declines to 13-Month Low

The ruble dropped to its weakest in almost 13 months on Thursday against the dollar as concern that global credit losses will spread damped demand for higher-yielding, emerging-market assets. Government bonds also fell.

The ruble's decline kept the currency near the lower end of its trading band against the Central Bank's dollar-euro basket as the cost of protecting Russian debt from default jumped to an almost two-year high. The currency has lost 6.6 percent versus the dollar since Aug. 8, when the conflict in Georgia began.

"Since the war with Georgia, people have stopped thinking about Russia as a normal place to invest," said Ulrich Leuchtmann, head of emerging-markets currency strategy at Commerzbank in Frankfurt.

The ruble fell as low as 25.84 per dollar, the weakest since Aug. 22, 2007, and traded at 25.83 Thursday evening in Moscow, from 25.74 on Wednesday.