Sept. 6 (Bloomberg) -- The ruble headed for its longest streak of gains against the dollar in seven weeks as oil rose before the European Central Bank meets today to decide on its bond-buying plan.
The ruble advanced 0.3 percent to 32.1849 at 10:38 a.m. in Moscow. Russia’s currency was 0.2 percent stronger versus the euro at 40.6250 and climbed 0.3 percent against the central bank’s target euro-dollar basket.
Crude, Russia’s biggest export earner, gained 0.7 percent to $96.06 a barrel in New York. ECB President Mario Draghi’s bond-buying proposal involves unlimited purchases of government debt that will be sterilized to assuage concerns about printing money, two central bank officials briefed on the plan said. The ECB’s Governing Council will decide today on bond-buying plans.
Investors pared bets the ruble will weaken further, with non-deliverable forwards showing the ruble at 32.6509 per dollar in three months.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell one basis point to 216, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields compiled by the Micex fell 10 basis points to 7.5 percent.
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