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The ruble gained for an eighth day against the central bank’s target dollar-euro basket, extending its streak of advances to the longest since December 2010 as crude rallied on bets the global economic recovery is on track.
The Russian currency added 1 percent to 31.9845 per dollar by the close in Moscow and appreciated 1 percent to 39.217 per euro. Those movements left it up 1 percent at 35.2391 against the basket which Bank Rossii targets to smooth currency movements that can curb the comptetiveness of Russian exporters. The ruble rallied for 10 days versus the basket in December 2010.
Brent crude jumped 1.9 percent to $107.15 per barrel, increasing for a seventh day. Oil and gas contribute about 50 percent of Russia’s state revenue. New U.S. home construction increased in June to the highest level in almost four years, data showed yesterday, while Fed Chairman Ben S. Bernanke outlined options to ease policy further should unemployment remain entrenched.
“Oil gains and risk appetite for emerging markets” as well as exporters converting revenue from abroad to pay monthly taxes, are driving the ruble’s apreciation, Sergey Fishgoyt, deputy head of foreign exchange at Otkritie Financial Corp. in Moscow, said by e-mail. The ruble may strengthen as much as 1.4 percent to 34.75 against the basket in the next few weeks, he said.
Investors pared bets on the currency weakening, with non- deliverable forwards showing the ruble at 32.489 per dollar in three months, compared with expectations of 32.7637 per dollar yesterday.
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