Bloomberg News

Ruble Strengthens Against Dollar for Second Day as Oil Advances

July 11, 2012

The ruble appreciated against the dollar for a second day as oil, Russia’s chief export, rose and amid speculation exporters are buying the Russian currency to make monthly tax payments.

The ruble gained 0.2 percent to 32.8198 per dollar as of 10:57 a.m. in Moscow, heading for the strongest close since July 5. Russia’s $3.5 billion of Eurobonds due July 2018 rose, cutting the yield by one basis point, or 0.01 percentage point, to 3.393 percent.

Brent crude rallied 0.6 percent to $98.59 per barrel after a report showed U.S. inventories fell 695,000 barrels last week, a sign of rising demand. The ruble is also being boosted as companies convert their foreign earnings to pay taxes in the Russian currency, according to Sergey Romanchuk, head of foreign exchange and money markets at OAO AKB Metalinvest Bank in Moscow. Russian companies pay taxes in the second half of every month.

“It looks like a big portion of export sales” driving the ruble’s gains and the currency may strengthen as much as 2.6 percent to 32 per dollar over the next week, Romanchuk said by e-mail.

The ruble rose 0.2 percent to 40.275 per euro and 36.1673 against the central bank’s target dollar-euro basket. Investors pared bets on the currency weakening, with non-deliverable forwards showing the ruble at 33.3478 per dollar in three months, compared with expectations of 33.4375 per dollar yesterday.

To contact the reporter on this story: Jack Jordan in Moscow at

To contact the editor responsible for this story: Gavin Serkin at

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