Ruble Gains to 2-Month High Versus Dollar on Global Economic Growth, Oil

The ruble gained for a third day against the dollar to its strongest level in nearly two months as optimism about the global economic recovery boosted the appeal of emerging-market assets.

The Russian currency added 0.7 percent to 30.5250, heading for its strongest close since May 18, by 11:32 a.m. in Moscow. The yield on Russia’s dollar bonds due 2020 fell 10 basis points to 5.178 percent, the lowest since April.

Crude for August delivery traded near its highest level in two weeks before a report forecast to show that inventories declined last week in the U.S., the world’s largest energy user.

“Looks like a new wave of optimism in the global markets resulting from good earnings in the U.S.,” said Denis Korshilov, head of foreign-exchange trading at Citigroup Inc. in Moscow. Korshilov said companies are buying the ruble to make tax payments due after July 15.

Investors pared bets that the ruble will weaken further, with non-deliverable forwards showing the currency at 30.7219 per dollar in three months compared with an NDF of 30.7830 on July 13. The contracts are a guide to expectations of currency movements as they allow foreign investors and companies to fix the exchange rate at a particular level in the future.

The currency weakened 0.2 percent to 38.8375 per euro, leaving it at 34.2758, the strongest since June 28, against the central bank’s target currency basket, which is used to manage swings that hurt Russian exporters.

The basket is calculated by multiplying the dollar’s rate to the ruble by 0.55, the euro to ruble rate by 0.45, then adding them together. The ruble remains within the 26 to 41 band the central bank pledged January 2009 to defend.

To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@bloomberg.net

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