Bloomberg News

Ruble Gains Second Day Before ECB Meeting, Erases Earlier Losses

September 05, 2012

The ruble strengthened for a second day, erasing earlier losses, before the European Central Bank meets tomorrow to decide on its bond-buying plan.

The ruble advanced less than 0.1 percent to 32.2900 at 7 p.m. in Moscow after falling as much as 0.6 percent. Russia’s currency was 0.3 percent weaker versus the euro at 40.7074 and retreated 0.1 percent against the central bank’s target euro- dollar basket.

ECB President Mario Draghi’s bond-buying proposal involves unlimited purchases of government debt that will be sterilized to assuage concerns about printing money, two central bank officials briefed on the plan said. The ECB’s Governing Council will decide tomorrow on bond-buying plans.

Investors pared bets the ruble will weaken further, with non-deliverable forwards showing the ruble at 32.7470 per dollar in three months, compared with 32.7590 yesterday.

The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell four basis points to 216, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields compiled by the Micex fell more than two basis points to 7.606 percent.

To contact the reporter on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net

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


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