Ruble Poised for Biggest Gain Against Basket in Four Weeks

The ruble strengthened against the central bank’s basket of currencies, heading for the biggest advance in four weeks. Government bonds rose.

The ruble advanced 0.3 percent to 38.0744 versus the central bank’s euro-dollar basket by 2:26 p.m. in Moscow, poised for its strongest daily gain on a closing basis since Aug. 2. The yield on the government’s ruble debt due February 2027 fell four basis points, or 0.04 percentage point, to 8.03 percent.

A slowdown in a sell-off of the Indian rupee and the Indonesian rupiah after the countries’ central banks acted to support the currencies and a correction in the euro versus the dollar helped the ruble against the basket today, OAO Rosbank (ROSB) analysts headed by Vladimir Kolychev said in an e-mailed note. The rupee snapped three days of declines, rebounding from a record low against the dollar, while the rupiah strengthened 2.9 percent.

The ruble was unchanged against the dollar at 33.2100 and advanced 0.6 percent against the euro to 44.0200.

Russia’s central bank sold 13.27 billion rubles ($399 million) of foreign currency on Aug. 27, bringing the total amount spent since May 29 to almost 432 billion rubles.

With the central bank offering $7 billion to $8 billion in the foreign exchange market a month, the ruble may continue to outperform other emerging-markets currencies, VTB Capital analysts Maxim Korovin and Anton Nikitin said in an e-mailed note. The ruble has lost 11 percent in spot terms from this year’s peak compared with drops of more than 15 percent for the Brazilian real, Turkey lira and South African rand, they said.

“We do not see any reasons for the ruble to follow the same disorderly depreciation path as rupee and rupiah,” Korovin and Nikitin said.

To contact the reporter on this story: Vladimir Kuznetsov in Moscow at vkuznetsov2@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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