Ruble Advances From One-Week Low on Taxes as Russia Sells Bonds
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The ruble climbed from a one-week low as Russian companies sought cash for tax payments, while the government’s borrowing costs rose at a bond auction after demand for the securities declined.
The currency strengthened 1.1 percent to 62.168 per dollar by 3:36 p.m. in Moscow, extending to 11 percent its gain in February. Companies have to pay about 450 billion rubles ($7.2 billion) of taxes on Wednesday, according to Sberbank CIB, helping shore up the ruble after a downgrade to junk by Moody’s Investors Service triggered a 1.3 percent drop yesterday. Russia sold 10 billion rubles of January 2020 notes, the same amount as last week, as the yield climbed 18 basis points to 13.5 percent.