The ruble advanced for a second day after Spain kept its investment-grade credit rating from Moody’s Investors Service, boosting investor appetite for riskier assets.
The ruble appreciated 0.6 percent to 30.7350 per dollar at 7 p.m. in Moscow. The Russian currency dropped 0.3 percent versus the euro to 40.3700 and was up 0.1 percent against the central bank’s euro-dollar target basket.
Moody’s kept Spain’s credit rating at Baa3, its lowest investment grade, as the risk that the country would lose market access had fallen because of the European Central Bank’s willingness to purchase its bonds. The euro gained as much as 0.6 percent to $1.3137, the highest level since Sept. 17. Oil in New York traded 0.2 percent down at $91.86 a barrel after advancing as much as 0.8 percent.
“We see everything is positive for the ruble, the euro is growing and oil is not falling a few percent a day,” Igor Akinshin, a currency trader at Moscow-based OAO Alfa Bank, said by phone. “There is appetite for risk.”
Non-deliverable forwards showed the ruble at 31.2125 per dollar in three months compared with 31.3470 yesterday.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell seven basis points to 171, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields fell 15 basis points to 6.98 percent, the steepest drop since Aug. 6.