Ruble Up Against Dollar for First Time in Four Days on Oil Gain

The ruble appreciated against the dollar, snapping three days of declines, as economic sanctions against Iran spurred prices for oil, Russia’s main export.

The Russian currency appreciated 0.6 percent to 29.30 per dollar as of 10:17 a.m. in Moscow. The country’s $3.5 billion of Eurobonds due 2020 rose, pushing the yield down four basis points, or 0.04 percentage point, to 4.12 percent.

Brent crude futures gained 0.3 percent to $122.76 per barrel after U.S. lawmakers introduced a bill seeking to expand sanctions on Iran, the second-biggest producer in the Organization of Petroleum Exporting Countries. Oil and gas together contribute about 17 percent of Russia’s gross domestic product and 50 percent of state revenue, according to government estimates.

The ruble lost 0.2 percent to 39.1947 per euro and was little changed at 33.7732 against the central bank’s target dollar-euro basket. Investors pared bets on the currency weakening, with non-deliverable forwards showing the ruble at 29.6986 per dollar in three months, compared with expectations of 29.8803 per dollar yesterday.

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