Bloomberg News

Ruble Reverses Drop Versus Dollar as ECB Pledges Bank Support

September 15, 2011

Sept. 15 (Bloomberg) -- The ruble climbed the most in a week against the dollar after the European Central Bank said it will lend to euro-area banks, spurring optimism the debt crisis will be contained and stoking appetite for riskier assets.

Russia’s currency appreciated 0.2 percent to 30.3975 by the 7 p.m. close in Moscow, reversing an earlier drop of as much as 0.4 percent and rebounding from its weakest level in eight months. The ruble was down 1 percent at 42.1000 versus the euro.

The Frankfurt-based ECB said that, in coordination with the Federal Reserve and other regulators it will conduct U.S. dollar liquidity-providing operations to ensure banks have enough of the U.S. currency through the end of the year.

Crude, Russia’s main export earner, rose as much as 1.4 percent to $90.02 a barrel in electronic trading in New York, reversing an earlier slide to $88.01 a barrel. Brent oil climbed 2.4 percent to $115.06 a barrel in London

The ruble’s moves against the dollar and the euro pushed the currency down 0.3 percent to 35.6144, the weakest since December based on closing prices, 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.

Investors pared bets the ruble will weaken further with non-deliverable forwards showing the currency at 30.7753 per dollar in three months. The contracts provide a guide to expectations of currency movements and interest-rate differentials and allow companies to hedge against currency swings.

--Editors: Alex Nicholson, Gavin Serkin

To contact the reporter on this story: Denis Maternovsky in Moscow at

To contact the editor responsible for this story: Gavin Serkin at

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