Bloomberg News

Ruble Strengthens for Third Day, Bond Yields Fall on U.S. Data

April 03, 2012

The ruble strengthened against the dollar for a third day and yields on Russia’s dollar-denominated Eurobonds fell as better-than-expected U.S. manufacturing data spurred demand for riskier assets.

The Russian currency appreciated 0.3 percent to 29.28 per dollar as of 10:11 a.m. in Moscow, heading for the strongest close since March 27. The country’s $3.5 billion of bonds due 2020 rose, pushing the yield down four basis points, or 0.04 percentage point, to 3.983 percent.

Higher-yielding assets like Russian bonds stand to gain after the U.S. Institute for Supply Management’s factory index climbed to 53.4 last month from 52.4 in February, beating estimates in a Bloomberg News survey and signalling improving growth prospects in the world’s largest economy. Urals crude oil, Russia’s chief export, rose 1.7 percent to $121.69 per barrel by yesterday’s close.

The ruble was little changed at 39.0702 per euro and 33.6936 against the central bank’s target dollar-euro basket. Investors pared bets on the currency weakening, with non- deliverable forwards showing the ruble at 29.6604 per dollar in three months, compared with expectations of 29.7 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


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