Ruble Drops on EU Bank Bailout

The ruble snapped two days of advances against the euro and fell versus the Central Bank's dollar-euro basket as a European agreement to bolster banks lured investors to euro-region countries.

The ruble dropped from its strongest closing price in more than two weeks versus the basket after governments of the 15 countries using the euro backed a bailout of banks in distress.

"Russia lacks a European Union connection and at the same time it has more political risk than other Eastern European countries," said Ulrich Leuchtmann, head of currency strategy in emerging markets at Commerzbank in Frankfurt.

The ruble declined 0.6 percent to 30.41 against the basket by Monday evening in Moscow, from 30.24 on Oct. 10, the strongest close since Sept. 25.

The Central Bank has no plans to widen the band, even though the country's $546.1 billion of international reserves are being depleted by regular interventions, First Deputy Chairman Alexei Ulyukayev said Monday, RIA-Novosti reported.