The ruble headed for the strongest close in a week against the dollar on bets Greece’s government will pass new austerity measures, boosting confidence in the euro and spurring demand for riskier emerging-market assets. Russia’s currency appreciated 0.2 percent to 28.109 per dollar as of 10:37 a.m. in Moscow, a second day of gains. A close at that level would be the strongest since June 22. The ruble was 0.2 percent weaker at 40.4049 per euro, leaving it little changed at 33.6422 versus the central bank’s target dollar-euro basket. The Greek parliament votes today on Prime Minister George Papandreou’s 78 billion-euro ($112 billion) austerity plan, needed before the cash-strapped nation can tap a fifth installment from last year’s 110 billion-euro rescue and euro- area finance ministers can approve a second aid package. “Market sentiment has lifted,” Thu Lan Nguyen, a currency strategist at Commerzbank AG in Frankfurt, said in response to e-mailed questions today. “The Greek parliament is expected to pass today’s fiscal plan and progress on a new aid package is being made, which was taken positively by markets.” Commerzbank predicts “some short- to medium-term strengthening” of the ruble due to rising oil prices, “which will, however, ease considerably by the end of the year,” Nguyen said. The ruble will strengthen 0.4 percent to 33.5 against the basket by the end of 2011, Nguyen said. Oil, Russia’s chief export earner, rose as much as 51 cents a barrel today, and last traded 0.2 percent higher at $93.11 a barrel. Crude is up 1.9 percent so far this year. Russian government bonds advanced for a second day, lowering the yield on dollar debt due in 2015 by three basis points to 2.964 percent, according to data compiled by Bloomberg. The yield on the country’s ruble Eurobond rose one basis points, or 0.01 percentage point, to 7.002 percent. Non-deliverable forwards, which allow companies to hedge against currency movements, show the ruble at 28.3759 per dollar in three months, compared with 28.3667 yesterday. To contact the reporter on this story: Jack Jordan in Moscow at jjordan22@bloomberg.net To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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