BLBG:Ruble Advances to Two-Month High Versus Dollar as Oil Gains
The ruble advanced to its strongest versus the dollar in more than two months as oil, Russia’s chief export earner, rose in New York.
Russia’s currency appreciated 0.8 percent to 27.5448 per dollar as of 11:05 a.m. in Moscow, its highest intraday level since May 5. The ruble was 0.4 percent weaker at 39.9525 per euro, leaving it 0.2 percent stronger at 33.1174 against the central bank’s target dollar-euro basket.
Oil climbed as President Barack Obama’s warning that the U.S. debt stalemate threatens to damage the economy weakened the dollar, boosting the appeal of commodities and countering concern the crisis will hurt demand. Crude for September delivery increased 0.5 percent to $99.68 a barrel.
Oil prices “continue to lend support to the Russian bourses,” Johannesburg-based Tradition Analytics wrote in an e- mailed note to clients.
Russian government bonds were little changed, leaving the yield on the ruble Eurobond due in 2018 steady at 6.836 percent. Non-deliverable forwards, which provide a guide to expectations of currency movements and allow companies to hedge against them, show the ruble at 27.7962 per dollar in three months, compared with 27.9908 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
