The ruble strengthened against the dollar, snapping an 11-day decline, and yields on Russia’s international debt fell as oil, the country’s main export, rose.
The Russian currency gained 0.3 percent to 31.1725 per dollar by the close in Moscow, the first advance since May 2. The country’s $3.5 billion of Eurobonds due 2020 rose for the first day in six, lowering the yield by 11 basis points, or 0.11 percentage point, to 4.052 percent.
Brent crude gained 1.3 percent to $108.51 per barrel after the Xinhua News Agency reported Chinese Premier Wen Jiabao saying his country will focus more on bolstering economic growth, signalling stronger demand for the commodity. The balance between supply and demand for crude is tightening, Goldman Sachs Group Inc. said in a report.
The ruble was little changed at 39.80 per euro and 35.0549 against the central bank’s target dollar-euro basket. Investors pared bets on the currency weakening, with non-deliverable forwards showing the ruble at 31.6689 per dollar in three months, compared with expectations of 31.704 per dollar on May 18.
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