Bloomberg News

Ruble Climbs Most in Month to Dollar, Bond Yields Drop on Oil

July 26, 2012

The ruble rose the most in almost a month against the dollar and yields on Russia’s international debt declined after oil, the country’s main export earner, advanced.

The Russian currency gained 1.4 percent to 32.3049 per dollar by the close in Moscow, the biggest gain since June 29. The country’s $3 billion of Eurobonds due 2042 rose, cutting the yield by 11 basis point, or 0.11 percentage point, to 4.577 percent.

Brent crude jumped 0.6 percent to $105.02 per barrel after a report showed fewer Americans than forecast filed first-time claims for unemployment insurance payments last week, a sign demand for the commodity may rally. Oil and gas together contribute about 50 percent of Russia’s state revenue, according to the government’s estimates.

The ruble was little changed at 39.695 per euro and gained 0.7 percent to 35.6304 against the central bank’s target dollar- euro basket. Investors pared bets on the currency weakening, with non-deliverable forwards showing the ruble at 32.8428 per dollar in three months, compared with expectations of 33.1838 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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