The ruble posted the biggest gain versus the euro in more than two months as the single European currency extended its decline after weak production figures from Germany and stronger than expected U.S. employment data.
The ruble strengthened 0.7 percent versus the euro to 39.8775 by the 7 p.m. close in Moscow, the biggest jump since Sept. 27. It advanced 0.4 percent versus the Russian central bank’s euro-dollar target basket to 34.9358. The Russian currency gained less than 0.1 percent against the dollar to 30.8925 and was little changed in the week.
The euro weakened for a third day after German industrial production fell 2.6 percent from September, when it declined 1.3 percent, the Economy Ministry said today. Germany’s economy, Europe’s largest, will contract in the fourth quarter and stagnate in the first three months of next year due to a recession in the euro area and slower global growth, the Bundesbank said today.
U.S. payrolls rose more than anticipated in November and the jobless rate slumped to an almost four-year low, indicating superstorm Sandy had a marginal effect on the U.S. labor market.
Non-deliverable forwards showed the ruble at 31.3383 per dollar in three months, compared with 31.3920 yesterday.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell four basis points to 190, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields dropped nine basis points to 6.4710 percent.