Bloomberg News

Ruble Climbs to Four-Week High to Dollar on EU Bank Proposals

October 12, 2011

Oct. 12 (Bloomberg) -- The ruble climbed to the strongest level against the dollar in almost four weeks on optimism Europe will ease its sovereign-debt crisis, boosting demand for Russia’s exports.

The Russian currency rose 1.4 percent to 31.1125 per dollar and gained 0.2 percent to 42.9175 per euro by the 7 p.m. close in Moscow, leaving it up 0.8 percent at 36.4248 against the central bank’s target dollar-euro basket. Investors pared bets the Russian currency would weaken further, with non-deliverable forwards showing it at 31.5540 per dollar in three months.

Global currencies and commodities rallied as European Commission President Jose Barroso called for a reinforcement of crisis-hit banks, the payout of a sixth loan to Greece and a faster start for a permanent rescue fund to master Europe’s debt woes. Urals crude oil, Russia’s main export blend, climbed 2.5 percent to $110.79 per barrel.

Russia’s dollar Eurobond due 2020 advanced, pushing the yield down 17 basis points to 4.879 percent. The yield on government dollar debt due 2015 was down 31 basis points at 3.467 percent.

--Editors: Alex Nicholson, Ana Monteiro

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


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