Ruble Gains Prompt Rate-Cut Bets by SocGen Unit as Taxes Loom
- Stronger ruble means lower risks for inflation, Rosbank says
- Market Vectors Russia ETF received $30.5 million on Oct. 9
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The ruble climbed, keeping gains even after oil retreated, as Russian companies prepared to pay local taxes. Societe Generale SA’s local unit said the strengthening currency will help the central bank resume interest-rate cuts.
The ruble is the best-performing emerging market currency this month after Indonesia’s rupiah and the Colombian peso, as crude prices rallied and investors speculate the Federal Reserve will delay the start of U.S. rate increases. The Bank of Russia kept its benchmark borrowing costs on hold for the first time this year at its last meeting after the ruble’s declines threatened to stoke price growth, hampering policy makers’ ability to bolster the contracting economy.