Bloomberg News

Ruble Gains Most in a Week Before Software Glitch Halts Trading

November 14, 2012

The ruble rose the most in a week, bolstered by tax payments, before a software error halted currency trading at the Moscow Exchange.

The ruble appreciated 0.4 percent to 31.6500 against the dollar as of 3:57 p.m. in Moscow, the biggest gain since Nov. 7. It was little changed versus the euro at 40.3300 and was up 0.2 percent against the central bank’s euro-dollar target basket.

Russian companies are supporting the ruble by buying the currency to pay taxes starting tomorrow, Igor Akinshin, a trader at Moscow-based Alfa Bank, said by phone. The Moscow Exchange initially suspended trading for one hour before extending the break until 6 p.m., it said on its website. The halt was due to a software error, Micex spokesman Nikita Bekasov said by phone.

“This does not bode well with investors,” Luis Saenz, head of equity sales and trading at BCS, said by e-mail. “The exchange has to be more clear -- especially with investors abroad.”

Russia’s Finance Ministry sold the smallest amount of ruble-denominated government bonds due in 2027 today as Europe’s debt crisis curbed appetite for riskier assets.

Non-deliverable forwards showed the ruble at 32.1305 per dollar in three months compared with 32.2265 yesterday.

The extra yield that investors demand to own Russia’s dollar bonds over U.S. Treasuries fell five basis points to 195, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yield rose five basis points to 7.1167 percent.

To contact the reporter on this story: Lyubov Pronina in London at lpronina@bloomberg.net

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


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