The Russian ruble is sinking, giving a bleak outlook for the focused exchange traded fund (ETF). Are investors ready to play this currency on a bounce?

The thinly-traded Currency Shares Russian Ruble Trust ETF (NYSEArca: XRU) is down 1.6% in the past month and 3% in the past three. According to the ETF Professor on Benzinga, the ruble is now oversold and a bump in oil prices could support XRU for a day or two.

Russian companies need to pay back more than $12 billion of foreign currency-denominated loans in December, the most since at least September, Bloomberg reported. [Russian ETFs May Benefit From Tech Initiative.]

Emma OBrian for Bloomberg BusinessWeek reports that Russia is easing its control over the ruble as other emerging markets try to limit their currency’s strength and restrict foreign investors’ access to local assets. [Currency ETFs: The Quiet Giant.]

Not everyone agrees about the ruble’s direction, though. The ruble is not in a “weakening” trend, German Gref, chairman of OAO Sberbank, Russia’s largest lender, said today by video address to a conference in Moscow.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.