Ruble Rallies as Global Stimulus Bolsters Carry Trade Appeal
- Currency offers second-best carry return among peers in 2016
- Bonds set for second weekly gain as investors chase yields
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The ruble strengthened, headed for its first week of gains in three, as optimism global central banks will keep the cost of money low boosted the allure of a currency that’s offered the second-best carry trade in emerging markets this year.
Russia’s currency gained 0.8 percent to 65.290 per dollar by 5:31 p.m. in Moscow, bringing its advance over five days to 1.1 percent. Traders who borrowed in dollars to invest in ruble-denominated securities have taken home almost 20 percent this year, the most after Brazil among 23 developing countries tracked by Bloomberg. Government bonds also attracted buyers for a second week, sending yields on 10-year debt down six basis points to 8.45 percent.