Bloomberg News

Ruble Advances Against Basket for Third Day on Oil-Price Rally

November 29, 2011

Nov. 29 (Bloomberg) -- The ruble advanced against the central bank’s target dollar-euro basket for a third day as oil, Russia’s chief export earner, rose in New York.

The Russian currency appreciated 0.2 percent to 36.0029 against the basket at the 7 p.m. close in Moscow after climbing 0.1 percent yesterday. The ruble rose 0.3 percent to 41.7625 per euro and was little changed at 31.2905 per dollar.

Crude futures jumped 1.4 percent to $99.61 a barrel in New York after demand for Italy’s debt increased in a government auction, a signal pressure on the country from Europe’s debt crisis may be easing. The European Union is Russia’s largest trading partner.

Russian companies are due to pay as much as 157 billion rubles ($5 billion) in taxes this week, according to Alfa Bank estimates in an e-mailed note Nov. 16. Exporters convert revenue in other currencies into rubles to pay the government, boosting the Russian currency.

Investors pared bets the ruble would weaken further, with non-deliverable forwards showing it at 31.7385 per dollar in three months, compared with expectations of 31.8525 per dollar yesterday. Russia’s dollar Eurobonds due 2020 fell, pushing the yield up two basis points to 4.683 percent.

--Editors: Peter Branton, Alex Nicholson

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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