Bloomberg News

Ruble Strengthens Versus Dollar as Crude Trades at 3-Month High

August 16, 2012

The ruble gained against the dollar as crude, Russia’s main export earner, traded at the highest in more than three months.

The currency appreciated 0.2 percent to 31.8900 per dollar, the most since Aug. 6.

Crude traded in New York rose for a third day, adding as as much as 0.8 percent percent to $95.14 a barrel. That would be the highest close since May 11. Oil and natural gas contribute about 50 percent of Russia’s government budget revenue.

Rising oil prices today were supporting the ruble, Igor Akinshin, a Moscow-based currency trader at Alfa Bank said by phone. Russian exporters may support the currency next week as they pay taxes by month-end, he said.

Investors pared bets on the ruble weakening against the dollar, with non-deliverable forwards showing the currency at 32.3878 in three months versus 32.4230 on Aug. 15.

The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries rose two basis points to 223, according to JPMorgan Chase & Co.’s EMBI Global Index. Yields on the government’s ruble bonds due April 2021 fell one basis point today 7.86 percent, data compiled by Bloomberg show.

The ruble weakened 0.6 percent to 39.4025 per euro and lost 0.2 percent against the central bank’s target euro-dollar basket to 35.2569.

To contact the reporters on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net; Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus