Ruble Strengthens to Six-Week High Against Dollar on Euro Optimism
The ruble appreciated to the strongest closing level against the dollar in six weeks as European leaders discussed a plan to recapitalize struggling banks and halt a surge in bond yields, boosting demand for riskier, emerging-market assets.
The Russian currency gained 0.9 percent at 27.74 per dollar at the 7 p.m. in Moscow, the strongest closing level since June 7. The ruble lost 0.5 percent to 39.9299 per euro, leaving it 0.2 percent stronger at 33.2255 versus the central bank’s target dollar-euro basket.
The euro advanced, U.S. Treasuries fell for a second day and oil prices rallied on speculation governments in Europe may guarantee Greek bonds to make it easier for the European Central Bank to accept a default on the debt. Crude oil, Russia’s biggest export earner, climbed as much as 1.8 percent to $100.16 a barrel in New York.
Investors are anticipating “that the European Union summit will yield a concrete solution to the Greek crisis,” Johannesburg, South Africa-base Tradition Analytics wrote in an e-mailed note to clients.
Russian government bonds were little changed, leaving the yield on the ruble Eurobond due in 2018 steady at 6.842 percent. Non-deliverable forwards, which provide a guide to expectations of currency movements and allow companies to hedge against them, show the ruble at 28.018 per dollar in three months, compared with 28.2735 yesterday.
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