Feb. 6 (Bloomberg) -- The ruble appreciated to a three- month high against the dollar as record-low temperatures in Europe drove demand for oil, Russia’s chief export earner.
The Russian currency advanced 0.2 percent to 30.12 per dollar at the 7 p.m. close in Moscow, the highest level since Oct. 28. The ruble rose 0.5 percent to 39.34 per euro and 0.4 percent to 34.269 versus the central bank’s target dollar-euro basket.
Brent futures rose 0.5 percent to $115.13 a barrel on the ICE Futures Europe exchange as unusually cold weather in Europe from a wave of Siberian air spurred demand for fuel. Russia is the world’s largest energy exporter.
“The oil price in absolute terms is relatively high, so when global concern subsides over the European situation I’d expect these oil prices to be supportive for the ruble,” Yaroslav Lissovolik, chief economist at Deutsche Bank AG in Moscow, said by phone.
Investors pared bets the ruble would weaken, with non- deliverable forwards showing the Russian currency at 30.473 per dollar in three months, compared with expectations of 30.4985 on Feb. 3. Russia’s 2020 dollar bonds rose, pushing the yield down six basis points, or 0.06 percentage point, to 4.285 percent.
--Editors: Peter Branton, Linda Shen
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