BS: Ruble Heads for Week High as Crude Rebounds on Europe Optimism
The ruble headed for its strongest level against the dollar in almost a week as crude oil, Russia’s main export earner, advanced amid optimism Europe’s debt crisis can be contained.
The ruble strengthened 0.4 percent to 31.0628 per dollar by 5:20 p.m. in Moscow, rebounding from an earlier decline of as much as 0.4 percent. The Russian currency fell 0.1 percent against the euro to 40.1475 and was up 0.2 percent versus the central bank’s euro-dollar basket.
Crude oil rose 1.1 percent to $93.18 per barrel in New York. Oil and gas account for about 50 percent of Russia’s state revenue. Spanish bank stress tests showed a capital deficit of 59.3 billion euros ($76 billion), less than the 100 billion euros agreed as part of a bailout.
“The fact that it is up again is more about the oil price rising,” Maria Pomelnikova, an analyst at ZAO Raiffeisenbank in Moscow, said by e-mail today. “The currency’s future movements will depend primarily on the backdrop overseas.”
Non-deliverable forwards showed the ruble at 31.5590 per dollar in three months compared with 31.7088 on Sept. 28.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell three basis points to 205, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields compiled by the Micex fell three basis points to 7.562 percent.
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
