Russia's ruble dropped along with sovereign bonds after the country's credit rating was cut to the second-lowest investment grade by Moody's Investors Service amid sanctions over Ukraine.

Moody's downgraded the sovereign one level to Baa2 from Baa1 and kept a negative outlook on the rating on Oct. 17. It is in line with Fitch Ratings Ltd.'s credit grade and one step above Standard & Poor's, which lowered Russia to BBB- in April. The yield on the nation's March 2030 Eurobond rose six basis points to 4.88 percent. The ruble weakened 0.7 percent to 41.0500 versus the dollar as of 4:31 p.m. in Moscow.

Russia has spent $13 billion from its foreign reserves this month to slow the ruble's weakening as tumbling oil prices add to the woes of an economy that's teetering toward recession amid U.S. and European Union sanctions. President Vladimir Putin and European negotiators are struggling to hold together a six-week truce in eastern Ukraine, inching forward in talks to prevent the fighting from escalating.