BLBG:Ruble Poised for Biggest Jump in Week to Dollar as China Demand Lifts Oil
The ruble headed for its biggest gain against the dollar in almost a week as a report showing higher Chinese fuel demand drove a rally in prices for oil, Russia’s chief export earner.
The currency was 0.3 percent stronger at 28.15 per dollar as of 10:46 a.m. in Moscow, after declining 0.5 percent yesterday. A close at that level would be the strongest advance since July 13. The ruble was 0.3 percent weaker at 39.71 per euro, leaving it little changed at 33.3533 versus the central bank’s target dollar-euro basket.
Oil climbed from a two-day low in New York after China said its apparent fuel consumption rose 7.2 percent in the first half. Crude for August delivery gained as much as 45 cents a barrel, and last traded up 0.3 percent at $96.24 a barrel.
Euro-area bonds are under pressure as investors bet the sovereign-debt crisis may spread to Italy, the region’s third- largest economy. The two-year notes of Greece and Portugal, both of which have received bailouts, yield 32.2 percent and 18.5 percent respectively, compared with the 5.3 percent yield on similar-maturity Russian debt.
Russian government bonds were little changed, leaving the yield on the ruble Eurobond due in 2018 steady at 6.872 percent. Non-deliverable forwards, which provide a guide to expectations of currency movements and allow companies to hedge against them, show the ruble at 28.4228 per dollar in three months, compared with 28.4699 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
