Bloomberg News

Ruble Strengthens Second Day After Sharpest Selloff Since 2009

June 05, 2012

The ruble appreciated against the dollar for a second day, paring its steepest decline since 2009 after the Russian central bank increased its intervention in the market.

The currency gained 1.3 percent to 33.005 per dollar by the 7 p.m. close in Moscow, after losing the most since January 2009 last month. Russia’s $2 billion of Eurobonds due 2022 rose, cutting the yield by five basis points, or 0.05 percentage point, to 4.346 percent.

The central bank increased its foreign-currency sales to support the ruble to $250 million to $300 million yesterday after the currency passed 37.65 against its target dollar-euro basket, according to Nomos Bank. The MSCI Emerging Markets Index of equities climbed 0.6 percent today to 887.36 on bets global policy makers will take steps to bolster growth.

“The reason for the ruble’s gains on the domestic market, apart from the actions of the central bank, were the seeds of optimism in world markets,” analysts at Moscow-based Broker Credit Service wrote in an e-mailed note to clients.

The ruble strengthened 1.6 percent to 36.6664 against the basket and 1.8 percent to 41.1414 per euro.

Investors pared bets on the ruble weakening, with non- deliverable forwards showing the ruble at 33.52 per dollar in three months, compared with expectations of 33.9695 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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