Bloomberg News

Ruble Climbs for a Fourth Day Versus Dollar as Brent Crude Jumps

July 18, 2012

The ruble appreciated against the dollar for a fourth day as oil, Russia’s chief export earner, rose.

The Russian currency gained 0.8 percent to 32.2925 per dollar by the close in Moscow. It strengthened 0.2 percent to 39.622 per euro and 0.5 percent to 35.5908 against the central bank’s target dollar-euro basket.

Brent crude jumped 1.2 percent to $105.25 per barrel today, increasing for a sixth day. Oil and gas contribute about 50 percent of Russia’s state revenue. Federal Reserve Chairman Ben S. Bernanke said yesterday the central bank is prepared to act to spur growth if needed.

“The U.S. Federal Reserve chairman’s comments were like a drip feed of nutrients to a sick market,” Troika Dialog Chief Strategist Chris Weafer wrote in an e-mailed note today. “Balancing the possibility of further monetary easing, or other growth stimuli, continues to be the only game in town for equity markets and most risk assets.”

Investors pared bets on the currency weakening, with non- deliverable forwards showing the ruble at 32.79 per dollar in three months, compared with expectations of 32.9430 per dollar yesterday.

To contact the reporters on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net; 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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