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Aug. 29 (Bloomberg) -- The ruble strengthened the most against the dollar in two weeks as oil, Russia’s chief export revenue earner, climbed for a third day and a report showed U.S. consumer spending increased more than forecast.
Russia’s currency appreciated 0.6 percent, its biggest daily gain since Aug. 15, to 28.7690 per dollar by the 7 p.m. close of trading in Moscow. The currency weakened 0.6 percent to 41.8200 per euro.
Crude for October delivery gained 2.2 percent to $87.26 a barrel in New York. Personal spending in the world’s largest economy rose 0.8 percent in July, compared with a 0.5 percent increase predicted in a Bloomberg survey, as autos sold at the fastest pace in three months, the Commerce Department said.
Investors pared bets that the ruble will decline, with non- deliverable forwards showing the currency at 29.0990 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 little changed at 34.6419 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.
--Editors: Stephen Kirkland,
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