BLBG:Ruble Gains Most in Two Weeks Versus Dollar on Oil Above $85
The ruble strengthened the most against the dollar in two weeks as oil, Russia’s chief export revenue earner, traded above $85 a barrel.
Russia’s currency appreciated 0.8 percent, poised for its biggest daily gain since Aug. 15, to 28.7200 per dollar by 11:09 a.m. in Moscow, heading for its strongest closing level since Aug. 16. It weakened 0.4 percent to 41.7500 per euro.
Oil rose from a three-day high in New York as investors speculated growth will recover in the U.S., spurring demand in the biggest energy consumer. Crude for October delivery gained 0.4 percent to $85.72 a barrel. Brent oil for October delivery pared earlier decline of as much as 83 cents, trading 6 cents weaker at $111.30 a barrel in London.
Investors pared bets that the ruble will decline further, with non-deliverable forwards showing the currency at 29.0555 per dollar in three months compared with 29.4600 on Aug. 26. The contracts provide a guide to expectations of currency movements and interest-rate differentials and allow companies to hedge against currency swings.
The movements against the dollar and the euro left the ruble 0.1 percent stronger at 34.5835 against the central bank’s target currency basket, which is used to manage swings that hurt Russian exporters. The basket is calculated by multiplying the dollar’s rate to the ruble by 0.55, the euro to ruble rate by 0.45, then adding them together.
To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
