Ruble Snaps Three Days of Declines as Crude Gains on U.S. Budget

The ruble snapped three days of declines as crude oil, Russia’s biggest export earner, advanced.

The ruble added 0.2 percent against the dollar to 30.8930 by 3:58 p.m. in Moscow. It gained 0.1 percent versus the euro to 40.7250 and increased 0.1 percent to 35.3174 against the central bank’s target euro-dollar basket. An index of five-year government bond yields compiled by the Micex fell two basis points to 6.4641 percent.

Crude climbed as much as 70 cents to $87.90 a barrel in New York on speculation an agreement will be reached to avert a U.S. budget impasse that would trigger automatic spending cuts and tax increases next year, sapping demand for fuels. Russia is the world’s biggest energy exporter and oil and natural gas account for about 50 percent of the nation’s government revenue.

Non-deliverable forwards showed the ruble at 31.3415 per dollar in three months. The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell eight basis points to 168, JPMorgan Chase & Co.’s EMBI Global Index shows.

The ruble slumped 1.1 percent against the dollar in the previous three days as importers of consumer goods bought foreign currency during the year’s busiest shopping season. The average Russian plans to spend the equivalent of $504 on presents, parties and entertainment during the year-end holidays, a 9 percent increase from the year before, the Vedomosti newspaper reported on Dec. 4, citing a survey by Deloitte.

To contact the reporter on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net

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

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