The ruble gained for a second day after oil rose and Barclays Capital recommended buying the Russian currency as foreigners enter the local debt market.
The ruble strengthened 0.2 percent against the central bank’s dollar-euro basket to 34.7534 by 12.25 p.m. in Moscow, headed for a 0.2 percent gain in the week. It added 0.2 percent versus the dollar to 30.1575. The yield on government ruble bonds due February 2027 rose one basis point to 7.04 percent.
Investors should buy the ruble versus the basket because the currency will appreciate after Euroclear Bank SA started access to direct settlement on the local debt market, according to analysts headed by Vladimir Pantyushin at Barclays Capital. The bond market will receive between $25 billion and $40 billion in inflows in 2013 to 2014, they wrote in an e-mailed note. Oil, Russia’s biggest export, climbed to a nine-month high, adding 0.2 percent to $117.48 a barrel in London trading.
“We believe that demand for long-term issues will reappear,” VTB Capital analysts Maxim Korovin and Anton Nikitin said in an e-mailed note.
Euroclear is currently settling the notes over the counter, which limits their influence on exchange prices, Uralsib Capital’s Olga Sterina wrote in an e-mailed note.
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