BLBG:Ruble Strengthens Third Day as Crude Oil Headed for Weekly Gain
The ruble advanced for a third day as oil, Russia’s chief export earner, headed for its first weekly gain in a month.
The ruble appreciated 0.1 percent to 30.9775 against the dollar by 2:40 p.m. in Moscow, paring its weekly loss to 0.4 percent. The Russian currency rose 0.1 percent versus the euro to 40.1800 and added 0.1 percent to 35.1173 against the central bank’s euro-dollar target basket.
Crude oil rose as much as 0.6 percent to $92.60 a barrel in New York. Oil and gas accounts for about 50 percent of Russia’s government revenue. U.S. first-time unemployment claims fell to 339,000 last week, the lowest since February 2008, according to Labor Department data yesterday. Turkey seized cargo on a Syrian passenger plane and unconfirmed media reports said weapons and military communications gear had been discovered.
“The news headlines concerning Turkey and Syria have added a new element to the oil risk calculation,” Chris Weafer, chief strategist at Sberbank-CIB, said in an e-mailed note today. “If sustained over the weekend, it should help provide good support for the ruble early next week.”
Non-deliverable forwards showed the ruble at 31.4563 per dollar in three months compared with 31.5125 yesterday.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell three basis points 186, according to JPMorgan Chase & Co.’s EMBI Global Index.
To contact the reporter on this story: Lyubov Pronina in London at lpronina@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
